Housing Benefit in the context of "Department for Work and Pensions"

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⭐ Core Definition: Housing Benefit

Housing Benefit is a means-tested social security benefit in the United Kingdom that is intended to help meet housing costs for rented accommodation. It is the second biggest item in the Department for Work and Pensions' budget after the state pension, totalling £23.8 billion in 2013–14.

The primary legislation governing Housing Benefit is the Social Security Contributions and Benefits Act 1992. Operationally, the governing regulations are statutory instruments arising from that Act. It is governed by one of two sets of regulations.

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Housing Benefit in the context of Universal Credit

Universal Credit is a United Kingdom based social security payment. It is means-tested and is replacing and combining six benefits, for working-age households with a low income: income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), and Income Support; Child Tax Credit (CTC) and Working Tax Credit (WTC); and Housing Benefit. An award of UC is made up of different elements, which become payable to the claimant if relevant criteria apply: a standard allowance for singles or couples, child elements and disabled child elements for children in the household, housing cost element, childcare costs element, as well as elements for being a carer or for having limited capability to work-related activities, due to illness or disability.

The new policy was announced in 2010 at the Conservative Party annual conference by the Secretary of State for Work and Pensions, Iain Duncan Smith, who said it would make the social security system fairer to claimants and taxpayers. At the same venue the Welfare Reform Minister, Lord Freud, emphasised the scale of their plan, saying it was a "once in many generations" reform. A government white paper was published in November 2010. A key feature of the proposed new benefit was that unemployment payments would taper off as the recipient moved into work, not suddenly stop, thus avoiding a "cliff edge" that was said to "trap" people in unemployment.

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Housing Benefit in the context of Income Support

Income Support was an income-related benefit in the United Kingdom for some people who are on a low income, but had a reason for not actively seeking work. Claimants of Income Support could be entitled to certain other benefits, for example, Housing Benefit, Council Tax Reduction, Child Benefit, Carer's Allowance, Child Tax Credit and help with health costs. A person with capital over £16,000 could not get Income Support, and savings over £6,000 affected how much Income Support can be received. Claimants had to be between 16 and Pension Credit age, work fewer than 16 hours a week, and have a reason why they were not actively seeking work (caring for a child under 5 years old or someone who receives a specified disability benefit).

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