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Mark T
17-11-2005, 18:10 PM
We have been dealing with many tenants who are receipt of housing benefit & I have a couple of queries regarding the housing benefit process. I have recently had a prospective tenant who enquired about renting a two bedroom house. The rent was £575 Per Calendar Month. The tenant got a rent valuation which came back at £525 Per Calendar Month. From this the tenant thought she would have to top up £50 Per Calendar Month, but I understand that housing benefit pay on a four weekly basis which equates to 13 payments per year. The way I have been calculating the tenants top up based on this process is by multiplying the tenants housing benefit by 12 and then by dividing it by 13. This will give me the figure of how much the tenant will be receiving per month & how much she will need to top up.

Rent office valuation of £525 x 12 = £6300

£6300 divided by 13 =£484.61

The monthly rent is £575 so - £484.61 = £90.39

£90.39 will be the tenants top up per month.

I have found that tenants seem to be confused on how much they need to top up because the rent valuation gives them a figure based on per Calendar Month & not four weekly payments which they will be receiving.

Energise
17-11-2005, 18:41 PM
You want £6900

HB pays £6300

Tenant Top up = £600 / 12 = £50 per month

lucid
17-11-2005, 19:02 PM
Energise is correct Mark T your maths is severely flawed!!

you are attempting to deduct the 4 week amount £484.61 from the £575 which is calendar month.

The answer really is a no brainer..as Energise said £50 top up per calendar month.

Though if you are receiving the benefit paid 4 weekly (assuming you don't mind it in arrears) then the 4 weekly top up would be:

575x12=6900 (yearly rent)

6900/52=132.69 (weekly rent)

132.69x4=530.76 (4weekly rent).....so

530.76-484.61=46.15

(The 484.61 being the 525 calendar monthly HB as a 4 weekly cycle)

Answer under these circumstances £46.15

MrShed
17-11-2005, 19:11 PM
Without wishing to hijack someone else's thread.....is there a way to calculate a very rough approximate potential HB entitlment? Without applying?

justaboutsane
17-11-2005, 20:45 PM
Your tenant may not get £525 HB... The pre tenancy determination just says that HB will be paid on a percentage of £525, therefore they feel the rent of £575 is too high for the area.. or higher than HB are prepared to pay. Your tenant may need to prepare themselves for more than £50 per month in top ups. She may be lucky and she may get 100% HB on £525 but I don't know how likely that is.

We ask all HB tenants to pay £20 a week top ups as soon as they move in. Once their HB claim has been assessed we reassess the figure accordingly. This often alievates a huge debt once the claim has been assessed.

RichieP
17-11-2005, 22:56 PM
.is there a way to calculate a very rough approximate potential HB entitlment?

I can't remember the exact figures, and they've probably changed since I used to do it, but it's something like this:

Work out the average income, net. If they are paid weekly, they need to provide
8 payslips, if monthly 3.

Anything above £30 per week they pay 65% towards rent.

Clear?