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Effect of Renters Reform Bill on benefits

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1 month 4 weeks ago #299934 by Michael
wonder if you could help with a query regarding the Renters Reform Bill, currently progressing through Parliament.

Like many others, I have been required to pay 6 months rent in advance for my private rental flat. I have done this - and claimed housing benefit, which I have put in a bank account towards the next 6 months rent. This was disregarded in terms of capital.

In future, I will no longer be required to pay my rent 6 months in advance, and will move to paying monthly. At that stage, I will have a sum of approximately £7000 in the bank (previously used to pay my rent in advance). My query for housing benefit, and other benefits, is how exactly will this sum be treated.

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1 month 4 weeks ago #299935 by David
Replied by David on topic Effect of Renters Reform Bill on benefits
Hi Michael

If the amount over £6000 is considered as savings/capital then for that £1000 you will have a small amount of tariff income deducted from your Benefit. Why cannot you pay your landlord rent as soon as the amount hits £6000?

David

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1 month 4 weeks ago #299938 by Michael
Replied by Michael on topic Effect of Renters Reform Bill on benefits
Sorry, I didn't make it clearer. The £7000 amount is all Housing Benefit payments - I would have previously used to pay for 6 months rent in advance. Now can only pay monthly, so wondering how the £7000 will be treated. I already have just under £6000 in savings.

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1 month 4 weeks ago #299957 by Chris
Replied by Chris on topic Effect of Renters Reform Bill on benefits
Hi Michael,

I do believe your backdated payments aren't taken into consideration for a year if it affects your savings over £6,000 - but based on you saying £7,000 - I would imagine they'll take the £1,000 as you being over, and they charge £4.35 for every £250 from your benefits. So £17.40 reduction per month from your UC. I would certainly ask them for clarification though, because of how low your bank balance can go, if it drops below the £6,000 - but with me, they took everything they could over the £6,000 in savings.

Chris.

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