Monday, May 21, 2012

Non-dependant deductions


A non-dependant deduction is a set amount that is deducted from a claimant's HB entitlement if they have someone living with them who is not dependant upon them, nor a lodger or border. Please see the hbnotes site for more information.

The level of non-dependant deduction rates had not increased since 2001 and in 2010 the Government announced in their June 2010 Emergency Budget their plan to reverse this fact so that by 2014 the rates will be at the level they would have been at had they been uprated every year.


These increases will have a massive impact on tenants and landlords and we have put together some ideas  and a flyer and standard letters for helping you keep these to a minimum. Please click on the links or see the menu on the left.

In 2011 non-dependant deductions saw a huge 28% increase. (Click here for our 2012 non-dependant deduction table).

The rates from April 2012 are now available - another huge increase this year of 22%!

 Rates 2010  Rates 2011  Rates 2012
 £7.40  £9.40  £11.45
 £17.00  £21.55  £26.25
 £23.35  £29.60  £36.10
 £38.20  £48.45  £59.05
 £43.50  £55.20  £67.25
 £47.75  £60.60  £73.85


It is expected that by 2014 they may be 90% higher than they were in 2010, so similar increases are expected over the next 2 years.

It is estimated that this reform will save the Treasury £340m a year.

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