Shared Accommodation Rate Q&A

A joint briefing from Homeless Link and Crisis.

This page is a brief guide to the Shared Accommodation Rate (SAR) and the new rules which came into force in January 2012. There is a short overview of the main issues followed by a more detailed section made up of the queries received following a webinar on SAR held by Homeless Link and Crisis. As such, much of the detail in this document is geared towards the experience and needs of service users and staff in frontline homelessness services.

This is a general guide only, and we suggest where more complex matters arise for claimants that appropriate advice is sought through your local authority, the DWP or from agencies such as Citizens Advice and Shelter.

Last updated 13 March 2012.

Contents

OVERVIEW
What is the Shared Accommodation Rate?
What is the age extension to the Shared Accommodation Rate?
Who is affected by the age extension?
Are there exemptions from the Shared Accommodation Rate?

DETAILED Q&A
THE SHARED ACCOMMODATION RATE AND EXEMPTIONS –  KEY TERMS AND DEFINITIONS
What is the definition of ‘shared accommodation’?
What is the definition of a ‘homeless hostel’ for the purposes of the exemption?
How long does the ‘homeless hostel exemption’ last for?
What is the definition of ‘accepting support’?
Who is responsible for the identification of hostels for the purpose of the exemption to the age extension?
Do church nightshelters count as hostels?
How long does the ‘MAPPA client exemption’ last for?

APPLYING FOR AN EXEMPTION
How does someone go about getting the exemption?
Who is responsible for proving the right to the homeless hostel exemption?
What evidence will be considered proof for the homeless hostel exemption to apply?
What if people have received support from hostels that are now closed or changed provider?
Who is responsible for proving the right to the MAPPA client exemption? What evidence will be considered proof for the MAPPA client exemption to apply?

TIMING OF THE CHANGES AND WHEN CLAIMANTS WILL BE AFFECTED
When will the new rules come into force and when should an eligible claimant apply for the exemption to the age extension?

PARENTS, COUPLES, CURRENT SHARERS, WORKING ADULTS
Does the SAR apply to parents who are single and whose children stay with them occasionally?
Does the SAR apply to couples where both are under 35?
What would happen if two or more people under 35 are already sharing a flat, how will the SAR age extension affect them? 
Will the age extension will also apply to people 25 – 34 years in part time/low paid work who receive part HB support, thus lowering their entitlement.

MITIGATING POTENTIALLY NEGATIVE IMPACTS
What can we do for vulnerable clients where SAR creates an unmanageable shortfall in their rent?

FURTHER INFLUENCING WORK
What is Homeless Link doing about anomalies in the exemptions and the SAR more broadly?
What is Crisis doing about SAR and assisting young people in the PRS

FURTHER RESOURCES AND ADVICE

OVERVIEW

What is the Shared Accommodation Rate?
The Shared Accommodation Rate (SAR) is the level of housing benefit that applies to single people in the private rented sector who are aged 34 years and under. Housing benefit for private sector tenancies is called Local Housing Allowance (LHA).

SAR means that housing benefit is limited to a maximum amount based on what is deemed an appropriate rent for a room in a shared property. This limit will vary depending on where the claimant lives. The SAR is based on the level of local rents for properties that are not self-contained.

This means that for a single person 34 years and under, their housing benefit entitlement will be limited to the amount of renting a room in a shared property. This is the case even if they live alone in a self-contained property.

What is the age extension to the Shared Accommodation Rate?
From January 2012 this lower rate of housing benefit was extended to single claimants aged 34 years and under. Previously it applied only to people aged under 25 years.

The age extension will apply to new applications for LHA/housing benefit support. For those single adults aged 34 years and under already receiving LHA who are currently receiving benefit at the self-contained one bedroom property level, the new SAR rules will come into effect at different points depending on the individual, such as from the anniversary of their claim or  if they move from their current tenancy.

More detail on how and when the new rules will come into effect is explained below.

Who is affected by the age extension?
Single people aged 25 - 34 years:

• who rent from a private landlord;
• who already receive housing benefit/LHA for a self-contained property;
• are about to make a new claim for LHA;
• who do not normally have children living with them;
• or are low paid and receive housing benefit/LHA for a part of their rent.

Are there exemptions from the Shared Accommodation Rate?There are a range of exemptions to the SAR, which can be broken down into those exemptions for people up to 25 years, exemptions for people aged 25 – 34 years, and exemptions which apply regardless of age.

Exemptions for people up to 25 years

• People who have been in care are exempt from SAR until they are 22 years old.

Exemptions for people 25 – 34 years

• People who have spent at least three months in a homeless hostel, or hostel specialised in rehabilitating and resettling people in the community, are exempt from the SAR. Further to this, to be eligible for the exemption the person needs to have been offered and accepted support to enable them to be rehabilitated or resettled in the community. The three months does not need to be continuous or even in the same hostel and the support element can be supplied by another agency (more detail below)
• A second exemption applies to people 25 or over who are subject to active multi-agency management under the Multi Agency Public Protection Arrangements (MAPPA). You may hear the term ’a MAPPA client’ or ‘under MAPPA’. It will apply to people who are under MAPPA Level 2 or MAPPA Level 3.  In the parts of Scotland where MAPPA is not fully in force an assessment is required in order to establish those individuals who are considered to be equivalent to level 2 and 3 cases. We are awaiting more detail from the DWP on how this exemption will work.

Non-age related exemptions

• The SAR does not apply to people who rent from a housing association or local authority
• Anyone who gets the severe disability premium in their benefit because they are entitled to the middle or higher rate element of the Disability Living Allowance is exempt from the SAR
• SAR does not apply to people living in supported housing provided by a registered charity, housing association, voluntary organisation or a county council (in England)

DETAILED Q&A

THE SHARED ACCOMMODATION RATE AND EXEMPTIONS – KEY TERMS and definitions

What is the definition of ‘shared accommodation’?
The Department of Work and Pensions (DWP) defines shared accommodation as “sole use of a bedroom and shared use of at least a living room, kitchen or bathroom.” This would include more ‘traditional’ shared properties, such as three individuals sharing a three bed house or flat, through to bedsits or houses of multiple occupation (HMO) where a bedroom may include a kitchenette but the bathroom is shared with other tenants in the building.

What is the definition of a ‘homeless hostel’ for the purposes of the exemption?
Based on the DWP’s circular on changes to the SAR, a “hostel” is a building which is:

• Domestic accommodation provided for people that is not in separate and self-contained units, and there is either board (eg some or all meals provided) or facilities for the preparation of food, or both and
• Is managed or owned by a registered housing association; or
• Is not operated on a commercial basis and funds are provided wholly or in part by a government department or agency or a local authority (eg is funded through housing benefit and supporting people contracts); or
• Is managed by a voluntary organisation or charity and provides care, support or supervision with a view to assisting people to be rehabilitated or resettled within the community (ie move on to independent living as appropriate to the client)
• The key parts of the definition are that a ‘hostel’ is not a service where the accommodation for individuals is self-contained; that it is not for profit; and that care, support or supervision is provided. However, the definition applies to a building, not the individual accommodation the client used, so if your service has some self-contained flats as part of a more traditional hostel building then the clients may still be able to qualify for the exemption – this will be determined by the local authority (see section below ‘Who is responsible for identification of hostels?’).

The DWP circular on the SAR changes says that “this definition would generally include both homeless hostels that take direct referrals from street outreach teams and ‘second stage’ hostels that support people to achieve stability and enable move-on to independent living.”

We know the exclusion of self-contained accommodation from the exemption criteria is in conflict with the result of 'Places of Change’ capital upgrades in many services. We will continue to highlight concerns around this.

How long does the ‘homeless hostel exemption’ last for?
The DWP states that once a person qualifies for this exemption it remains in place until they are 35 years old and thus no longer subject to the SAR rules. The only time this would change would be if they moved into a shared property and would therefore only be able to apply for the housing benefit rate applicable to a shared property.

It does not matter how long ago an individual moved out of a homeless hostel, they will be eligible for the exemption as long as the other criteria are met and they can provide evidence of their stay in the hostel.

What is the definition of ‘accepting support’?
The DWP has not provided guidance for services, or for local authorities, on the criteria for offering or accepting support.

The DWP states:
"The claimant should also have been offered and accepted support services with the aim of rehabilitating or resettling them within the community. For example this might include support with physical or mental health needs, or recovery from the effects of domestic violence, resettlement support or treatment for substance misuse issues. The support services do not have to have been provided by the hostel, but must have been offered and accepted during the claimant’s stay. No minimum or maximum level of support is specified; the requirement is to be satisfied that the claimant engaged with sufficient support services to enable rehabilitation."

This is an invitation to define the support offer quite broadly and look at ‘accepted support’ in a personalised way. For example, did the client engage at all with keywork sessions, pre-tenancy training, art or sport programmes, client involvement, education or training? Did the client engage at all with external services such as GP services, mental health teams, drug and alcohol services? 

Who is responsible for the identification of hostels for the purpose of the exemption to the age extension?
This responsibility falls to the local authority housing benefit team. We suggest providers contact their local authority and offer assistance in identifying hostels that meet the criteria by supplying details of the services they run. Remember that the hostel does not have to be in the same location as the place the person is making a claim for housing benefit.

We have created  a spreadsheet of all the direct access accommodation services in England which we believe meet the criteria of a hostel as used by the DWP - including those that have now closed or changed providers. Download the list from here

Do church nightshelters count as hostels?
We are seeking advice on whether church nightshelters that form a circuit of provision qualify as hostels. We anticipate that if the church nightshelter does not fit within the definition of a hostel then this will not qualify. You will need to discuss this with your local Housing Benefit team.

How long does the ‘MAPPA client exemption’ last for?
The DWP are still formalising procedures around this so we anticiapte some changes to this over coming months. Currently, the length of time that the claimant will be exempt will be set at the point the MAPPA exemption is applied for, and that period may be based on their license period. We believe that at the end of this period, the exemption will be reviewed and, if the claimant is still at MAPPA Level 2 or Level 3 or has moved to one of these levels, their period of exemption may be extended.

We recommend that frontline staff and claimants discuss this with the lead worker or agency – such as the MAPPA co-ordinator or offender manager. (See this circular, paragraph 6)

APPLYING FOR AN EXEMPTION

How does someone go about getting the exemption recognised?
The responsibility to know about and apply for any exemption falls on the individual claimant.  It is quite possible that Housing Benefit forms may not be updated to include reference to the exemptions from the onset of the changes to the SAR. Therefore services have a big role to play in informing and advising service users, and assisting them in flagging up their entitlement to an exemption.

Who is responsible for proving the right to the homeless hostel exemption?
The claimant is responsible for providing proof to support their claim for an exemption. Staff can support clients by ensuring they know they are eligible for this exemption. See the section below on proof.

What evidence will be considered proof for the homeless hostel exemption to apply?
The DWP circular has not specified what constitutes acceptable proof, but expects that it will take the form of written confirmation from the hostel/s.

"The claimant would need to provide evidence of their period of stay in an appropriate specialist hostel (or hostels) as well as confirmation that they had been offered and accepted support to help them be rehabilitated or resettled in the community. The onus is on the claimant to provide supporting evidence and details. This will normally be achieved through written confirmation from the relevant hostel (or hostels), with the claimant’s consent".

Crisis and Homeless Link are looking at possible templates or models to assist services and local authorities around proof and evidence to meet the criteria of the homeless hostel exemption. As there is no defined format or content of the proof needed we recommend providers contact their local authority now in order to influence and assist them to define which documents or formats they will accept, and advise and clients accordingly.

What  if people received support from hostels that are now closed or changed providers?
As the responsibility to prove eligibility for the exemption resides with the claimant it is really important that hostels, claimants and their representatives talk to local authorities about what evidence is available and what else may be considered. For example, where the hostel has closed or changed providers a combination of the following documents may be considered as proof, e.g. hostel records, old licence or tenancy agreements, housing benefit records, hostel directory records (such as those held in archive by Homeless Link), Supporting People records, social services records and so on. Again, as acceptable evidence will be defined by each local authority we encourage service providers to contact the local authorities now in order to influence and assist in this process.

Who is responsible for proving the right to the MAPPA client exemption? What evidence will be considered proof for the MAPPA client exemption to apply?
As we mentioned above, the DWP and MoJ are still working on procedures for this, but the DWP says that "it is intended that a proforma will be completed by the relevant agency or MAPPA co-ordinator to say that the criteria for meeting the exemption have been met. This will then be sent through to a nominated contact on the relevant benefit section of the local authority. This personal sensitive data must be kept confidential and the Data Protection Act must be complied with. Further guidance will be issued on these procedures later in the year." If you or your client is eligible for the MAPPA exemption please contact the relevant MAPPA co-ordinator in the first instance. See also this DWP Operations Circular on the MAPPA client exemption to the age extension for lead agencies, which also includes the pro-forma.

In the areas in Scotland where MAPPA is not yet fully in force the assessment will be made by a social worker, supported by their team leader and signed off by the Service Manager.

TIMING OF THE CHANGES AND WHEN CLAIMANTS WILL BE AFFECTED

When will the new rules come into force and when should an eligible claimant apply for the exemption to the age extension?
This is a complex area and the following information is a general guide. Please consult your local authority or the DWP for more detail.

Much of the timing about when the new rules will apply to a claimant are based on a relationship between when the original claim was made and how this and their review date relate to the main starting date, which is 1 January 2012.

The basics are:

• Any new claims made after 1 January 2012 are subject to the new rules and must include a request for the exemption at the time of the application.
• For existing claims, the new rules will apply from the anniversary of the claim when the annual review of the claim takes place. A request for an exemption should therefore be made at this point.
• For claims that were made before April 2011, the new rules will apply after the claimant’s nine month transitional protection has ended.
• From 1 January 2013 the new rules will be in place for all claimants who are not eligible for an exemption

PARENTS, COUPLES, CURRENT SHARERS, WORKING ADULTS

Does the SAR apply to parents who are single and whose children stay with them occasionally?
DWP information states that those single people who do not “normally” have their children living with them will be subject to the same rules as other single people under 35 years.

Does the SAR apply to couples where both are under 35?
No, the SAR applies only to people claiming housing benefit as a single person.

What would happen if two or more people under 35 are already sharing a flat, how will the SAR age extension affect them? 
If the tenant is already receiving housing benefit then it is likely that in this situation the claimant is already subject to SAR as their claim would have been for their portion of a shared rent, and thus there should not be an impact. It is important to note that they will only be entitled to the SAR rate until they are 35 years old, even if they choose to move to a self-contained property on their own.

Will the age extension apply to people 25 – 34 years in part time/low paid work who receive part HB support?
Yes, they are subject to the same housing benefit rules as people not in work.

MITIGATING POTENTIALLY NEGATIVE IMPACTS

What can we do for vulnerable clients where SAR creates an unmanageable shortfall in their rent?
Local Authorities do have available to them a discretionary housing payment fund. In the first instance we suggest where this situation arises the claimant is supported to apply for discretionary housing payment.

It is possible for the local authority to use this fund to support a person to either stay in self-contained accommodation or where an unmanageable shortfall results from the rule changes. We know of one local authority that uses part of their discretionary housing benefit monies to pay the portion of the rent which exceeds the SAR or one bedroom limit where there is simply not enough local stock for a claimant to move into shared property. The difficulty is that as it is a discretionary fund, local authorities can use this money as they see fit, it is not ring-fenced for housing provision, and the fund is relatively small in relation to the Housing Benefit cuts being made.

FURTHER INFLUENCING WORK

Both Crisis and Homeless Link continue to seek change on the SAR to ensure that housing benefit rules are applied fairly and do not adversely impact on people with experience of homelessness.

What is Homeless Link doing about anomalies in the exemptions and the SAR more broadly?
Homeless Link understands that there a number of anomalies and contradictions in the SAR guidance and exemptions as it stands. We are working with the DWP and other government departments to address these issues. In the short term we are looking at:

• Consistent criteria for and identification of hostels with regard to the age extension exemptions
• Contradictions between the current trend for more self-contained units in homelessness services from the Department of Communities and Local Government and Homes and Communities Agency and the definition of a hostel for the purposes of the exemption
• Claimants’ experiences of trying to claim the exemptions and the knowledge and awareness of Housing Benefit staff.

In the longer term we are seeking the reversal of the decision to extend the age of the SAR and to ensure that the SAR for younger people does not prevent them moving on to independent living.

What is Crisis doing about SAR and assisting young people in the PRS?
Crisis have been campaigning on the SAR for a long time and have published research, Unfair Shares, showing that the extension will impact on vulnerable people for whom sharing is inappropriate.

We welcome the exemptions but believe they do not go far enough. We will be monitoring the impact of the changes going forward and continuing to feed into Government.

We are also funding a range of PRS access schemes across England that are assisting those who are newly affected by the SAR changes.  We will continue to monitor and share best practice and learning from these schemes on our dedicated resource website.

FURTHER RESOURCES AND ADVICE

DWP resources:
DWP has published a Circular for local authorities on changes to the SAR, which is also helpful for frontline homelessness services
DWP Operations Circular on the MAPPA client exemption to the age extension with pro-forma for lead agencies
DWP circular on implementation dates

If you are in need of specific benefits or legal advice for a client in relation to these issues, please contact:
Citizens' Advice for information and advice on benefits
Shelter for information and advice on housing issues

If you would like to add a question to this page please contact Kathleen Caper

Last Updated: 13 February 2012