Officially known as the size criteria for the social rented sector this 'tax' is aimed at tenants of social landlords (Housing Associations, Local Authorities, etc) who are of working age.
From 1 April 2013 onwards tenants who are of working age and claiming housing benefit will have the amount of housing benefit they can claim capped. This will depend on how many spare bedrooms you have in your home. If you have 1 spare bedroom, 14% of your monthly will be deducted and the maximum housing benefit you can claim will be your monthly rent minus the 14%. This will rise to 25% if you have 2 or more spare bedrooms in your home.
One of the most obvious impacts of this cap is that tenants who previously enjoyed receiving housing benefit at the rate of 100% of their monthly rent will no longer do so. The shortfall will need to be paid by the tenant, directly to the Housing Association. This may cause financial hardship.
The Association recommends that tenants do everything they can from a financial perspective to make the payments that are due as a result of the capping of housing benefit. All payments need to be made directly to the Association and we can discuss how easy or how difficult this is likely to be for you.
The Association also suggests that tenants consider moving to accommodation that is suitable for their needs. Please see our section on what we can do to help, below. We will do all that we can to assist tenants to move should they wish to do so.
We can discuss a potential transfer with tenants either at our offices or in their own homes. All tenants need to do is to contact us and we will make an appointment discuss the process, prospects, etc.
We changed our Allocation and Transfer Policy which will allow the Housing Manager to apply discretionary underoccupation points to increase the prospects of those who have a specific need to move as a result of the bedroom tax.
Our staff also have the discretion to provide assistance and support to Charing Cross tenants to move. This includes help with removal costs.
If tenants move they will be living in a property that meets their needs. The property will be smaller and as a result should cost less to maintain.
Living in an appropriately sized property will mean that tenants will no longer be subject to the bedroom tax.
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