What's New?
This is where you can found out what's new in Housing and Council Tax Benefits, as well as what's going to be happening soon.
Employment and Support Allowance (ESA)
What is Employment and Support Allowance?
From 27 October 2008 there is a new benefit from The Department for Work and Pensions (DWP) called Employment and Support Allowance (ESA). It is for new customers and will replace Incapacity Benefit (IB), Income Support paid on the grounds of incapacity (IS) and Severe Disablement Allowance (SDA).
Customers who are currently in receipt of IB, SDA or IS are not affected by this change and both schemes will run alongside each other for some time.
How will the Department for Work and Pensions assess ESA?
There will be 2 phases; the assessment phase that is paid for up to 13 weeks, then the main phase with an extra component; either a work-related activity component or a support component. During the assessment phase a health care professional will carry out a Work Capability Assessment with you. The DWP will then decide if you are entitled to ESA, and which component you should be awarded in the main phase.
How does ESA affect Housing and Council Tax Benefit?
Customers will either be awarded Employment and Support Allowance (Income Related) or Employment and Support Allowance (Contributory).
Employment and Support Allowance (Income Related) or ESA (IR)
Employment and Support Allowance (Income Related) or ESA (IR)
- It is means tested which means that it is based on the income and capital of you and your partner. The capital limit is £16,000.
- ESA (IR) is a passported benefit, just like Income Support and income-based Job Seeker’s Allowance.
- If you are in receipt of ESA (IR) in either the assessment or the main phase, you will receive full Housing and Council Tax Benefit (subject to any non-dependant deductions which may apply or your rental charge).
Employment and Support Allowance (Contributory) or ESA (C)
- It is based on the amount of National Insurance contributions that you have paid in the past.
- It is not a passported benefit.
- You may not get full Housing and Council Tax Benefit if you are in receipt of this. We will also take into account any income and capital that you or your partner may have.
‘Better Buy’ Option
For Housing and Council Tax Benefit claims from couples where one or both are receiving Employment and Support Allowance, there is a ‘better buy’ option where you may be financially better off if you switch who is the Housing or Council Tax Benefit claimant. We will calculate this when you make your claim and if it is beneficial to switch we will write to you to explain what you need to do.
Get more information on ESA
See the DWP website for more information on ESA and other DWP benefits.
Changes to Backdating Rules
On 6 October 2008 there was a change to the backdating rules for Housing Benefit and Council Tax Benefit claims.
Under the previous backdating rules, benefit payment could be backdated for 12 months if the claimant could show they had good cause for not claiming benefit earlier.
There are now new rules for backdating a claim, depending on whether the customer is of working age or Pension Credit age.
Working Age Customers (women aged 18 – 60, men aged 18 – 65)
- The maximum period for which Housing and Council Tax Benefit claims may be backdated has reduced to 6 months.
- The customer will need to show good cause for not claiming earlier.
Pension Credit Age Customers
- The maximum period for which Housing and Council Tax Benefit claims may be backdated has reduced to 3 months.
- The customer does not have to show good cause for not claiming earlier.
Read more about backdating and the new rules.
Local Housing Allowance
Since 7 April 2008 there has been a change to the way in which we work out how much Housing Benefit we can pay some of our claimants. This is known as Local Housing Allowance (LHA), and it affects people who live in, or move to, privately rented accommodation (but not Housing Associations) who make a new claim for Housing Benefit. This includes a claim made following a change of address.
The LHA rate is the same for all tenants with the same circumstances and is worked out based on the size of the household and not the rent. Claimants who are under 25 years old, are single and do not have any dependents can only get the LHA shared room rate.
Read more about Local Housing Allowance.
Pension Credit and Council Tax Benefit
We’re currently working with the Pension Service to help more people to reduce their Council Tax bill. The Pension Service have provided us with details of people who are receiving Pension Credit, but not currently receiving any help in paying their Council Tax.
Over the past few weeks we have started to contact these people and invite them to make a claim for Council Tax Benefit. In some instances, those receiving Pension Credit, and living in rented accommodation, may also be able to get help in paying their rent.
How to make a claim
To make the process as straightforward as possible, we are issuing our customers with a specially designed 3-page claim form. We will only have to ask for more information if the claimant lives in rented accommodation, has other adults living with them (other than their partner), or has children living with them.
Remember – claim your benefits…it’s your right!
This is a significant project because it’s thought that up to £1.8 billion of Council Tax Benefit is going unclaimed each year across the UK. In fact, across the country, more than 40% of pensioners who own their own home are unaware that they are entitled to help. We are doing all we can to make sure the citizens of Sheffield receive the benefits to which they are rightfully entitled.
As many as three million people in total across the UK are not claiming what is rightfully theirs and the Department for Work and Pensions is actively encouraging home owners, pensioners and people on low income to find out if they are eligible for rebate on their Council Tax bill.
What other changes have occurred recently?
For more news and information about what has affected Housing and Council Tax Benefit in recent years, have a look at What Happened in Previous Years?
How useful is this page?