Simplifying Housing Benefit Rules: What You Need to Know About the 2025 Amendment

The UK government has introduced an important change to the Housing Benefit regulations that will affect how claims are processed for certain individuals. The goal? To simplify the process and reduce redundancy for people already receiving Universal Credit. Here's what you need to know about the new regulation, set to take effect in 2025.

What's the Change?

The new rule amends the Housing Benefit Regulations 2006, specifying that individuals receiving Universal Credit will no longer be classified as 'persons from abroad' when applying for working-age Housing Benefit. Previously, local authorities had to assess whether a claimant was habitually resident in the UK or exempt from this requirement—a process that could be both time-consuming and complex.

Who Does It Affect?

This amendment applies to people in England, Scotland, and Wales who are already on Universal Credit and are applying for working-age Housing Benefit. It does not affect those who aren't receiving Universal Credit.

Why This Matters

By eliminating the need for local authorities to reassess the habitual residence status of individuals already vetted by Universal Credit, the process becomes more efficient. This change aims to prevent inconsistent decision-making and unnecessary duplication for both claimants and local authorities.

Previous vs Current Policy

Previously, local authorities had to independently verify if a Housing Benefit applicant was a 'person from abroad', even if they were on Universal Credit. This often led to delays and additional paperwork. Now, if you're on Universal Credit, your eligibility for Housing Benefit will not require this extra step.

Impacts and Expectations

The change is expected to significantly decrease the number of detailed assessments local authorities conduct each month. However, it won't result in cost savings for local councils, as they will still need to conduct other eligibility checks.

Consultations and Approvals

The Social Security Advisory Committee and the Local Authority Association were consulted, and both were content with the changes. No major concerns were raised.

What's Next?

An adjudication circular will be published to guide local authorities on the new process before it officially kicks in. The Department for Work and Pensions will monitor the implementation to ensure it runs smoothly.

In essence, this regulatory tweak is about cutting red tape, making it easier for individuals on Universal Credit to receive the Housing Benefit they may be entitled to, without unnecessary additional hurdles.