MRAssociates — Knowledge base
We provide the only free knowledge base in the UK dedicated to Supported Exempt Accommodation
In the same topic…
- contentWhy is exempt accommodation exempt from benefit limits?
- contentWhere does the law define “exempt accommodation”?
- contentWhat is the social sector LHA?
- contentWhat is the history of exempt accommodation?
- contentWhat is Supported Exempt Accommodation?
- contentWhat is disguised profit?
- contentWhat is an asset lock?
- contentWhat is a non-metropolitan county council in England?
- contentWhat is a housing association?
- contentWhat is a DWP resettlement grant?
- contentWhat are the benefit limits from which exempt accommodation is exempt?
- contentWhat are the advantages of exempt accommodation?
- contentWhat is a voluntary organisation?
- contentTell me more about registered housing associations and exempt accommodation
- contentTell me more about registered societies
- contentWhat is exempt accommodation?
- contentHow is housing benefit calculated when a person living in exempt accommodation is employed?
- contentHow is Housing Benefit calculated for exempt accommodation?
- contentHow is accommodation “provided by” a social or voluntary sector landlord?
- contentWhat is the law on exempt accommodation subsidy?
- contentSubsidy calculation when the landlord is a registered housing association
- contentHow do the housing benefit subsidy arrangements work in exempt accommodation
- contentWhat does “not trading for profit” mean?
- contentSubsidy calculation when the landlord is a charity, voluntary organisation or English non-metropolitan county council
- contentWhich landlords count as being in the social or voluntary sector?
- contentWhat is a registered charity?
- contentCan a not-for-profit body buy goods and services from its own members and directors?
- contentWhere does the law define exempt work?
- contentExamples of subsidy for exempt accommodation
Topics
How does the taper work for employed claimants living in exempt accommodation? (Figures)
In all of the following examples, assume that the rent eligible for Housing Benefit is £200 a week. Out of work the claimant is entitled to full Housing Benefit of £200 a week. Figures are based on benefit rates for the year 2015/16: see the note at the end of this page for brief details of changes announced from 2016/17.
Examples 1 to 3: the claimant is a single person aged over 25 and fit for work
While out of work, the claimant’s total income is £273.10 a week made up of:
- £73.10 a week of Jobseekers Allowance
- £200 a week of Housing Benefit
Or
- £73.10 a week of Universal Credit
- £200 a week of Housing Benefit
If the claimant finds work:
| Example 1: part time work, earnings £150 (no tax or NI liability), not entitled to Universal Credit as earnings are too high; insufficient hours for Working Tax Credit | |
|---|---|
| Income for Housing Benefit assessment: £150 net earnings less “disregard” of £5 a week | £145.00 |
| Applicable amount (to cover living costs other than rent | £73.10 |
| Taper: 65% of excess income over applicable amount (145 - 73.10 x 65%) | £46.74 |
| Housing Benefit entitlement: Full eligible rent £200 minus "taper" £46.74 | £153.26 |
| Total weekly income has increased to £303.26 (HB 153.26 + earnings 150.00) |
| Example 2: full time work, earnings £15,000 a year gross (£13,287 after tax and NI), not entitled to Universal Credit or Working Tax Credit as earnings are too high | |
|---|---|
| Income for Housing Benefit assessment: £255.52 net earnings less “disregards” of £5 a week and another £17.10 because the claimant works full time | £233.42 |
| Applicable amount (to cover living costs other than rent) | £73.10 |
| Taper: 65% of excess income over applicable amount (233.42 - 73.10 x 65%) | £104.21 |
| Housing Benefit entitlement: Full eligible rent £200 minus "taper" £104.21 | £95.79 |
| Total weekly income has increased to £351.31 (HB 95.79 + earnings 255.52) |
| Example 3: part time work, earnings £500 a month (no tax or NI) (=£115.38pw), claiming Universal Credit | ||
|---|---|---|
| Income for Universal Credit assessment: £500 net earnings less “work allowance” disregard of £111 a month | £389.00 | Equivalent pw £89.77 |
| Taper: 65% of excess earnings over work allowance (389.00 x 65%) | £252.85 | Equivalent pw £58.35 |
| Universal Credit: Maximum UC per month for single person with no housing costs 317.82 less taper of 252.85 | £64.97 | Equivalent pw £14.99 |
| Housing Benefit entitlement: Anyone on UC is entitled to maximum HB on their full eligible rent | £200.00 | |
| Total weekly income has increased to £330.37 (HB 200.00 + earnings 115.38 + UC £14.99) |
Examples 4 and 5: the claimant is a single person aged over 25 with “limited capability for work” (officially unfit for work)
While out of work, the claimant’s total income is £302.15 a week made up of:
- £102.15 a week of income-related Employment and Support Allowance-allowance "Glossary: Employment and Support Allowance")-allowance "Glossary: Employment and Support Allowance")
- £200 a week of Housing Benefit
Or
- £102.15 a week of Universal Credit
- £200 a week of Housing Benefit
If the claimant finds work:
| Example 4: part time work, earnings £80 a week (no tax or NI liability), not on Universal Credit as it is not yet available in the claimant’s area to people who are unfit for work. |
|---|
| Because the claimant’s earnings are from “exempt work” they are completely ignored for both Employment and Support Allowance and Housing Benefit: The claimant remains entitled to £102.15 of ESA and £200 of HB |
| Total weekly income has increased to £382.15 (HB 200.00 + earnings 80.00 + ESA £102.15) |
| Example 5: part time work, earnings £600 a month (no tax or NI) (=£138.46pw), claiming Universal Credit | ||
|---|---|---|
| Income for Universal Credit assessment: £600 net earnings are less than “work allowance” disregard of £647 a month1 | £0.00 | Equivalent pw £0.00 |
| Taper: N/A - no excess earnings | £0.00 | Equivalent pw £0.00 |
| Universal Credit: Maximum UC per month for single person with limited capability for work and no housing costs is 317.82 basic allowance plus LCW addition of 126.11 | £442.93 | Equivalent pw £102.452 |
| Housing Benefit entitlement: Anyone on UC is entitled to maximum HB on their full eligible rent | £200.00 | |
| Total weekly income has increased to £440.91 (HB 200.00 + earnings 138.96 + UC £102.45) |
This is the amount disregarded from the earnings of a person who has Limited Capability for Work and whose Universal Credit assessment does not include a housing element (if the claimant occupies exempt accommodation there is no housing element). ↩
Using the x12/52 method. By the x12/366x7 method weekly UC in the 2015/16 year is a few pennies less than weekly the ESA shown in Example 4. But the rates of UC and ESA will be exactly equal from 2016/17 using the x12/365x7 method ↩