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 accommodation “provided by” a social or voluntary sector landlord?
- contentHow does the taper work for employed claimants living in exempt accommodation? (Figures)
- 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
How is Housing Benefit calculated for exempt accommodation?
The Housing Benefit calculation uses three key figures that vary according to the circumstances of the claimant:
- Appropriate maximum Housing Benefit (AMHB)
- Applicable Amount
The Applicable Amount is the amount of money allowed for weekly living expenses other than rent, such as food, fuel, clothing etc. It consists of standard amounts set by central government for single people and couples of different ages and any dependent children for whom they are responsible.
- If the claimant’s income does not exceed the Applicable Amount, he or she is awarded the full AMHB
- If the claimant’s income exceeds the Applicable Amount, he or she is expected to make a means-tested contribution towards his/her rent and the AMHB is reduced accordingly
The most common items of income received by people who live in exempt accommodation are:
- Department for Work and Pensions benefits:
- Means-tested benefits: Income Support, income-based Jobseekers Allowance, income-related Employment and Support Allowance, State Pension Credit and Universal Credit
- If the claimant receives any of these s/he is automatically entitled to full AMHB - irrespective of any other income s/he receives as well
- Contribution based benefits: Jobseekers Allowance, Employment and Support Allowance, Incapacity Benefit, State Retirement Pension
- These are taken into account in full as income
- Earnings from employment
- A small amount of earnings (usually between £5 and £25 a week) is disregarded from the assessment and the rest is taken into account as income
- But if the claimant is doing permitted “exempt work” while officially unfit for work the earnings are ignored completely. For more information about exempt work see How is housing benefit calculated when a person living in exempt accommodation is employed?
AMHB consists of:
- The eligible rent, which may be the full amount of rent the claimant has to pay to the landlord or may be restricted in various ways (see "What are the benefit limits from which exempt accommodation is exempt?" below), minus
- Any non-dependant deductions that apply in the claimant’s case. A non-dependant deduction is a notional contribution towards the rent from adults aged 18+ living as part of the household. There are not usually any non-dependant deductions in exempt accommodation
Eligible rent in exempt accommodation
The eligible rent is less likely to be restricted in an exempt accommodation case than in other Housing Benefit cases: the rules are designed to cover the reasonable additional costs to the landlord of owning, leasing, managing and maintaining exempt accommodation. But there are some restrictions that can apply: disputes and appeals about these restrictions are not uncommon.