Deductions

Other people who live with you in your home (including any relatives) can affect the benefits you receive. These deductions don’t just apply to members of your household who are in employment. You can have your benefit reduced if someone living in your home is receiving a certain benefit.

 

We are in a period of welfare reform, changing from Housing Benefit to Universal Credit. Deductions are different depending on which benefit you are claiming. If you claim Housing Benefit, they are called Non-Dependant Deductions. If you claim Universal Credit, they're called Housing Cost Contributions. Read more about these below.

Your responsibilities

You are responsible for making sure that your rent is always paid in full. This is likely to involve asking the person living with you to pay the shortfall. You should inform Derby Benefits if someone turns 18 whilst living with you.

To make sure you're claim is correct and you're receiving the right amount of benefits:

  • Check if your housing benefit claim details are up to date.
  • Make sure you have the correct income details for any people over 18 living with you
  • Is your non-dependant contributing enough? Their income will reduce the amount of housing benefit you receive and they may need to contribute more.

If you fall behind with your rent, even because of these deductions, the whole household could be evicted. If you are concerned about these changes or need more information, get in touch with us.

If you live with a council tenant

If you are an adult living with the tenant(s) of a council property, for benefit purposes, you are classed as a ‘non-dependant’. This means that your income could reduce the amount of housing benefit the tenant receives.

The council tenant(s) you are living with will need to pay more of their rent themselves because of you, so you need to make sure you are paying or contributing enough to the household budget.

Remember, if the tenant falls behind with their rent payments, the whole household (including you) could be evicted.

Non-dependant deductions

Non-dependant deductions are an amount taken from your weekly housing benefit payment. People aged 18 years and over who live with you are classed as "non-dependants" for benefit purposes. The financial circumstances of these people can affect how much benefit you receive. The higher their income, the more your benefits may be reduced. The amount deducted from your benefit each week usually increases every April.

You can find the latest amounts here: Deduction rates for 2018/19 (Shelter website)

The actual amounts deducted from your benefit will be different to the standard rates if your rent is calculated over 48 weeks rather than 52.

Note: If you or your partner are aged over 65 years, there will be no deductions for the first 26 weeks after the person moves in to your home.

Housing cost contributions

Housing Cost Contributions are a flat rate deduction from the Housing Allowance element of your monthly Universal Credit payment. There will be a deduction for each person living with you aged 21 years and over. The rate is likely to be around £65 per month.