Benefits Changes

Content owner : housing@knh.org.uk Last updated : 25/04/13

In March 2012, the Government introduced a series of reforms to the benefits system that will affect nearly everyone who claims state benefits.

The main changes are outlined below. Many of you are bound to have questions or concerns about what is going to happen to YOUR benefits, so please contact us for help: 01484 414886

Under-occupancy charge (also known as spare bedroom tax)

This cuts the amount of benefit that working age tenants can get if they have a spare bedroom in their council or housing association home.


It allows for one bedroom for each person or couple, with the following exceptions:

  • Children under 16 of the same gender are expected to share
  • Children under 10 are expected to share, regardless of gender
  • A disabled tenant or partner who needs an overnight carer will be allowed an extra bedroom

The Government is introducing this reduction from April 2013. f you are affected, your Housing Benefit will be reduced by:

  • 14% of the rent charge if you are under-occupying by one bedroom (so if your rent before Housing Benefit is £80 per week, your benefit will be cut by £11.20 a week)
  • 25% of the rent charge if you are under-occupying by two bedrooms (so if your rent before Housing Benefit is £80 per week, your benefit will be cut by £20 a week)

If you are of working age, receiving Housing Benefit and have one or more spare bedrooms, your Housing Benefit will be reduced and you will have to make up the difference yourself or risk losing your home.

Universal Credit

This brings together a range of working age benefits into a single streamlined payment that will be paid direct to tenants’ bank accounts. The benefits being replaced by Universal Credit are:

  • Income Support, Income-Based Job Seekers Allowance and Income-Related Employment and Support Allowance
  • Housing Benefit
  • Child Tax Credit and Working Tax Credit

People claiming these benefits will automatically be moved on to Universal Credit on a phased basis from 2013

Direct Payments

From October 2013 working age tenants will have the housing element of the new Universal Credit paid to their bank account.


Some people will continue to have housing costs paid to their landlord but most will have to start paying rent themselves, out of their overall benefit entitlement.

Overall benefit

This will cap the total benefits a person or couple is entitled to. The cap will be set at the average net earnings for a working household.


Current projections of the cap are £500 per week for couples and lone parents and £350 per week for single people without children, including housing costs.

More information

You can get more information about applying for benefits or changes to the benefits system from your housing team, any Kirklees Information Point, or the benefits section of the council's website.