Housing Benefit personal allowance will increase next month – what this means for Britons

Do YOU qualify for housing benefit?

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Housing Benefit offers important financial aid to individuals who are unemployed, on a low income or claiming benefits. The sum, overseen by the Department for Work and Pensions (DWP) can help with the cost of rent – often a signifiant financial burden for many individuals. While the benefit is being gradually phased out by the newer Universal Credit payments, there are still many individuals who claim Housing Benefit.

As a result, these people are likely to be happy to note the Housing Benefit personal allowance sum will increase this year – with an uprating now just a month away.

There is no set amount a person can receive under Housing Benefit, as this is dependent on their individual circumstances.

However, when considering how much a person should receive, the Government uses a figure known as the personal allowance.

Housing Benefit is calculated when the Government adds together any personal allowances as well as additional premiums a person may be entitled to.

Both of these are set by the Department for Work and Pensions (DWP), but there are also additional elements to take into account.

A person will find their income and the situation with their rent are also considered when the Government comes up with an applicable amount. 

This is then relayed to individuals who will be told how much they can expect to receive.

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How will Housing Benefit personal allowance increase in 2021?

Single people aged under 25 will see their allowance change from £58.90 to £59.20.

Those aged between 25 and the state pension credit age will see an increase from £74.35 to £74.70.

Individuals who have reached state pension age will have an increase from £187.75 to £191.15.

For couples, where both are aged under 18, the sum increases from £89 to £89.45.

Where one or both in a couple are aged between 18 and state pension credit age the increase will be from £116.80 to £117.40.

Finally, where one or both have reached the state pension credit age, an increase from £280.85 to £286.05 will be observed. 

People will only be able to make a new claim for Housing Benefit in the following circumstances:

  • An individual has reached state pension age
  • An individual is in supported, sheltered or temporary housing

There is, however, a savings limit which is worth bearing in mind when it comes to Housing Benefit.

If a person’s savings are over £16,000, unless they are in receipt of the Guarantee Element of Pension Credit, they will not be able to receive support.

Furthermore, there are alternative circumstances where a person may not be able to claim.

Those paying for a mortgage, living in the home of a close relative, students, asylum seekers, and Crown Tenants amongst others will usually not be entitled to Housing Benefit.

If a person is already claiming Universal Credit, they will usually not be entitled to the sum unless they are in temporary or supported housing. 

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