Did you know? Understanding benefits and entitlement – myth or reality? Part two
The second part of understanding benefits - myth and facts. You've probably heard plenty of myths about housing benefit, universal credit, council tax reduction, housing costs and support for people seeking asylum and we want to separate fact from fiction.
It's important to remember that entitlement is assessed on a case-by-case basis and depends on factors such as income, savings, who lives in your household and immigration status. Any changes in circumstances should be reported promptly.
Common myths and facts
Myth - local councils choose where asylum seekers are housed.
Fact - asylum accommodation is arranged by the Home Office and its accommodation providers. People seeking asylum cannot choose where they live, and councils do not allocate them council housing.
Myth - if you are affected by the 'bedroom tax', (the 'bedroom tax' reduces your housing benefit or the housing element of universal credit by 14% or 25% if you have more bedrooms than the government says you need) the council will automatically pay the shortfall.
Fact - extra help with housing costs may be available through discretionary local support, but it is not automatic. Awards are normally limited, assessed case by case, and depend on the funding available.
Myth - you cannot get help with council tax if you have any savings.
Fact - savings are considered, but having savings does not automatically mean you cannot get help. Council tax reduction is based on your own council's rules (local scheme) along with your household income and circumstances. At Arun, working-age claimants can have up to £6,000 in savings and still qualify for support. housing benefit is usually not paid if savings exceed £16,000, unless an exception applies.
Myth - council employees do not have to pay Council Tax.
Fact - council employees pay tax like everyone else. Public sector workers pay council tax, income tax, national insurance and value added tax (VAT) in the same way as other residents and workers.
Myth - there is a perception that some foreign nationals and people without legal immigration status receive housing and welfare support, while some UK residents who are working or have worked feel they are not receiving the assistance they need.
Here's the facts:
- benefits in the UK are means-tested and targeted at households on the lowest incomes. Many British citizens in low-paid work receive universal credit, help with rent or council tax reduction if they meet the rules
- many people living in the UK on certain visas or legal foreign workers are not allowed to claim most benefits or access social housing because they have 'no recourse to public funds' (NRPF). This is a legal condition attached to UK immigration where a person cannot claim from a local council. However, they may still pay income tax, national insurance and council tax
- people without legal immigration status cannot claim mainstream benefits such as universal credit, housing benefit or council tax reduction
- asylum seekers are not given normal benefits or allocated council housing. If they are poverty-stricken, they may receive Home Office accommodation and a small weekly allowance while their claim is considered, however:
- they cannot choose where they live
- they cannot claim universal credit or most mainstream benefits
- current asylum support is usually £49.18 per person per week, or £9.95 per person per week if meals are provided
Need support or unsure what you can claim?
Please don't rely on word of mouth and non-expert advice, go to our website: Benefits | Arun District Council for information or us on 01903 737500.
Report changes promptly, and ask for advice if your income, savings, household or immigration status changes.
If you missed it, you can find part one here: Did you know? How to understand benefits and entitlement - the myths and facts (part one) | Latest news | Arun District Council