Housing allowance for new tenants
1 June 2016
The Government is changing the way they calculate Housing Benefit and the housing element of Universal Credit. While this only effects tenants who join us from April 2016, this means that if you are a new tenant, the amount you receive will be different.
If you sign a new or renewed tenancy with Red Kite from 1st April 2016 (or 1st April 2017 for supported accommodation tenancies) the amount of Housing Benefit you receive will be reduced. This reduction won't take place right away - up until 1st April 2018 you will still receive the same amount of Housing Benefit.
We will be asking all our new tenants to sign and confirm that they understand this. When the amount of Housing Benefit (or the housing element of Universal Credit) they receive is capped to the Local Housing Allowance rate for the household size, they will need to make sure that they can pay the difference between their rent and the amount of benefit that they receive.
For example, if your rent was £100 and your Housing Benefit was capped at £75, you would have to pay the £25 difference when you pay your rent.
If you need help, we're here for you
If you are a new tenant who will need to pay the difference between your housing benefit and your rent, we can help you to do this. From giving you information on job clubs and helping you to draft a CV to improve your income, there are lots of things we can do to help. You can find out more on our Financial support page, or you can talk to our Home budgeting team if you'd like more information.