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Licence Fee

Legal words

For HB purposes a licence fee means “payments in respect of a licence or permission to occupy the dwelling” - Reg 12(1)(b) of the Housing Benefit Regulations 2006.

When the occupier of a dwelling is not a tenant, s/he will tend to be a licensee by default. A tenant must have exclusive possession of a dwelling from which s/he has the right to shut out the world, including the landlord. Therefore a licensee claiming HB will typically be:

  • A lodger who shares living accommodation with the landlord and the landlord’s family
  • A person occupying a room in a hostel where it is necessary for the landlord to have the right to move people around and enter their room to clean or provide support