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Thread: Migrates FROM UC to HB - loses money.

  1. #1
    Senior Member nukecad's Avatar
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    Migrates FROM UC to HB - loses money.

    I've just seen an interesting one on Rightsnet, one that I'd never though about and I'd never seen come up before.

    A single person on UC, living in shared accomodation in a private rental so LHA rate is paid, reaches State Pension Age.

    UC Housing Element for a single person over 35 pays the one bed LHA rate no matter where they are living, and so covered the rent.

    But UC is a 'Working Age Benefit' and stops at pension age so you have to claim HB for housing instead.

    HB only pays the shared rate of LHA if you are in shared accomodation, and so it no longer covers the rent.

    So in those particular circumstances just by reaching State Pension Age your benefit for the rent gets reduced through no fault of your own.
    Not exactly compassionate is it?

    It seems to be another 'we didn't think about that' problem with having different rules for UC.
    I don't see anyway around it without them changing the Housing Benefit law so that all pensioners (or all over 35's) get 1-bed rate the same as with UC.
    Last edited by nukecad; 01-06-21 at 13:22.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  2. #2
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    I'd lose £5.40 if I went from ESA to State Pension.

    A rather useful income chart

    https://mylife.enfield.gov.uk/media/...-guarantee.pdf

  3. #3
    Senior Member nukecad's Avatar
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    That chart is about a different thing altogether.

    It only applies if you are a pensioner being charged by a Local Authority for care services.

    It's about the "Minimum Income Guarantee" which says that if a Local Authority are charging pensioners for care services then they have to leave them enough to live on.

    Housing costs (which is what this thread is about) are not included in the MIG.

    (That particular chart is for Enfield and actually shows higher allowances than MIG, other LA's will be different, many/most will be at minimum).

    More about paying for care and the MIG:
    https://www.ageuk.org.uk/globalasset...t_home_fcs.pdf
    After paying your contribution to care services provided to you, your
    weekly income should not reduce below a minimum income level, called
    the ‘Minimum Income Guarantee’ (MIG).
    The MIG should only be applied to income you have available after
    housing costs have been deducted. Under the charging regulations,
    housing costs mean ‘mortgage repayments, payments by way of rent or
    ground rent, council tax’ and certain service charges.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

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