Housing Benefit Shared Accommodation Rate

Housing Benefit rates for people rented private sector accommodation are limited by Local Housing Allowance rates, set by each Local Authority area. The Shared Accommodation Rate (SAR) is the maximum Housing Benefit rate for people living in ... shared accommodation. This rate currently creates a ceiling for Housing Benefit claims for all single people aged under 25. This means that claimants are restricted to the rate for a single room in a shared house, rather than the rate for a self-contained one bedroom property. This causes considerable problems for young people, with many unable to secure or sustain affordable accommodation and left facing shortfalls, arrears and homelessness.

From January 2012, the Government will apply this rate to all claimants under the age of 35. This will increase the potentially damaging effects of SAR to a much larger age group.

In July 2011, the Government announced two limited exemptions from the extension of the SAR, that is people who have lived in homeless hostels for at least 3 months (and who have a support plan) and ex-offenders who are assessed as posing a risk to others. We have to wait and see exactly how these exemptions will be applied in our area.

John Hebden, 25/10/2011