The Government's intention behind this idea is: to contain the growing HB bill in the social housing sector; to encourage greater mobility within the social housing sector; to make better use of social housing stock, and to improve work incentives for working age claimants.
When?
These rules will apply to working age claimants in the social housing sector (with some limited exceptions) and will apply from the date of implementation, expected to be April 2013, to both new and existing HB claimants.
How does this idea fit with Universal Credit?
Good question! This measure is due to take effect from April 2013. Universal Credit is set to take over all new claims for Housing Benefit from April 2014 - although many claimants will move onto Universal Credit from October 2013 - click here to see the proposed timetable. The Universal Credit Housing Costs draft regulations show that the Underoccupancy Penalty will also affect UC claimants - we don't know yet if the rules under Universal Credit will mirror the proposed rules under HB.
And one grey area is mixed age couples ie where one is below Pension Credit age and the other is over Pension Credit age, as these couples, who are not already on Pension Credit, will be expected to claim Universal Credit and therefore be subject to the underoccupancy rules. Click here for more information.