Section: Benefits & Grants

HB IN BRIEF

Housing Benefit Minister James Plaskitt promised that the Government would look at possible amendments to the Housing Benefit Scheme, following the publication of a new research report, which considers young people's access to and ability to afford accommodation in the private rented sector while receiving Housing Benefit.

The research examined the impact of the 'single room rent restriction' (SRR), a restriction that applies to most claimants who are below the age of 25, single, without children, and renting in the private sector. Since its introduction, in 1996, the SRR has limited such young claimants' Housing Benefit entitlement, to the average cost of a one-room accommodation with shared facilities in a claimant's area – the 'single room rent.' This is the point of reference notwithstanding the lack of availability of this type of accommodation in some areas. Claimants who are subject to the SRR, but live in other types of accommodation, e.g. in a self-contained flat, must usually make up the shortfall themselves.

The introduction of the 'single room rent' aimed to increase the amount of Housing Benefit young low-income earners could claim to rent a room in a shared house, but research since its introduction has been largely critical of the restriction.

The new research uncovered the widely held view that the SRR is responsible for an increased sense of uncertainty among young low-income earners, and is a factor in the resort to the homelessness route, as the only way into accommodation, and so should be abolished.

Shelter, the British Property Federation, the CAB, and Joseph Rowntree Foundation formed a loose arrangement to work together on reviewing the content of the forthcoming Housing Benefit Bill, as it passes through its Parliamentary stages. High on the list for scrutiny will be the proposals for introducing a flat-rate local housing allowance system. (The Housing Monthly Diary reported on a progress report for the piloted flat-rate Local Housing Allowance (LHA) in its April edition).
A survey by the Scottish Federation of Housing Associations found that only 25% of the Scottish associations surveyed were happy with their council's performance in the administration of Housing Benefit. It revealed that 75% of associations would prefer to administer Housing Benefit themselves, or buy the service in from another association.

The survey found that some councils take up to six months to process claims, rather than the 14-day target. The system for managing overpayments also attracted widespread criticism.

Section: Benefits & Grants

HB IN BRIEF

Housing Monthly Diary

Reporting on July/August 2005

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