This page is an updated guide to the Shared Accommodation Rate (SAR) and the new rules which came into force in January 2012. There is a short overview of the main issues followed by a more detailed section made up of common queries. Much of the detail in this document is geared towards the experience and needs of service users and staff in frontline homelessness services. What is the Shared Accommodation Rate? The Shared Accommodation Rate (SAR) is the level of Housing Benefit that applies to single people in the private rented sector who are aged 34 years and under. Housing Benefit for private sector tenancies is called Local Housing Allowance (LHA). SAR means that Housing Benefit is limited to a maximum amount based on what is deemed an appropriate rent for a room in a shared property. This limit will vary depending on where the claimant lives. The SAR is based on the level of local rents for properties that are not self-contained. This means that for a single person 34 years and under, their Housing Benefit entitlement will be limited to the amount of renting a room in a shared property. This is the case even if they live alone in a self-contained property. Prior to 2010 the Shared Accommodation Rate was officially called the “Single Room Rate” (SRR) and this term is sometimes still used by people to describe the SAR. What is the age extension to the Shared Accommodation Rate? From January 2012 this lower rate of Housing Benefit was extended to single claimants aged 34 years and under. Previously it applied only to people aged under 25 years. Are there exemptions to the Shared Accommodation Rate? There are a range of exemptions to the SAR, which can be broken down into those exemptions for people aged 25 – 34 years, exemptions for care leavers, and exemptions which apply regardless of age. Exemptions for people 25 – 34 years  People who have spent at least three months in a homeless hostel, or hostel specialising in rehabilitating and resettling people in the community, are exempt from the SAR. The three months does not need to be continuous or even in the same hostel and the support element can be supplied by another agency (more detail below).  A second exemption applies to people 25 or over who are subject to active multi-agency management under the Multi Agency Public Protection Arrangements (MAPPA). You may hear the term ’a MAPPA client’ or ‘under MAPPA’. It will apply to people who are under MAPPA Level 2 or MAPPA Level 3 (more detail below). In the parts of Scotland where MAPPA is not fully in force an assessment is required in order to establish those individuals who are considered to be equivalent to level 2 and 3 cases.

Exemptions for care leavers  People who have been in care are exempt from SAR until they are 22 years old. Non-age related exemptions  The SAR does not apply to people who rent from a housing association or local authority.  Anyone who gets the severe disability premium in their benefit because they are entitled to the middle or higher rate element of the Disability Living Allowance is exempt from the SAR.  SAR does not apply to people living in supported housing provided by a registered charity, housing association, voluntary organisation or a local authority (in England). How is the SAR set in each local authority? Under Local Housing Allowance, Broad Market Rental Areas (BMRA) have been defined, and rent officers attempt to determine a median rent level which is intended to give Housing Benefit recipients access to roughly the cheapest 30% of the properties available to rent in any given area.

DETAILED Q&A THE SHARED ACCOMMODATION RATE AND EXEMPTIONS – KEY TERMS AND DEFINITIONS What is the definition of ‘shared accommodation’? The Department of Work and Pensions (DWP) defines shared accommodation as “sole use of a bedroom and shared use of at least a living room, kitchen or bathroom.”1 This would include more ‘traditional’ shared properties, such as three individuals sharing a three bed house or flat, through to bedsits or houses of multiple occupation (HMOs) where a bedroom may include a kitchenette but the bathroom is shared with other tenants in the building. What is the definition of a ‘homeless hostel’ for the purposes of the exemption? Based on the DWP’s circular2 on changes to the SAR, a “hostel” is a building which is:  Domestic accommodation provided for people that is not in separate and selfcontained units, and there is either board (e.g. some or all meals provided) or facilities for the preparation of food, or both and  Is managed or owned by a registered housing association; or  Is not operated on a commercial basis and funds are provided wholly or in part by a government department or agency or a local authority. For example where a project is funded by Housing Benefit and Supporting People; or  Is managed by a voluntary organisation or charity and provides care, support or supervision with a view to assisting people to be rehabilitated or resettled within the community (i.e. move on to independent living as appropriate to the client). 1

https://www.gov.uk/government/publications/hb-circular-a122011-changes-made-to-the-use-of-theshared-accommodation-rate 2 https://www.gov.uk/government/publications/hb-circular-a122011-changes-made-to-the-use-of-theshared-accommodation-rate

The key parts of the definition are that a ‘hostel’ is not a service where the accommodation for individuals is self-contained; that it is not for profit; and that care, support or supervision is provided. The DWP circular on the SAR changes says that “this definition would generally include both homeless hostels that take direct referrals from street outreach teams and ‘second stage’ hostels that support people to achieve stability and enable moveon to independent living”. We know the exclusion of self-contained accommodation from the exemption criteria is in conflict with the result of 'Places of Change’ capital upgrades in many services. We will continue to highlight concerns around this. How long does the ‘homeless hostel exemption’ last for? The DWP states that once a person qualifies for this exemption it remains in place until they are 35 years old and thus no longer subject to the SAR rules. The only time this would change would be if they chose to move into a shared property. They would then only be able to apply for the Housing Benefit rate applicable to a shared property. However, if they subsequently moved into a self-contained property they would again be eligible for the exemption It does not matter how long ago an individual moved out of a homeless hostel, they will be eligible for the exemption as long as the other criteria are met and they can provide evidence of their stay in the hostel. Who is responsible for deciding what does and does not constitute a hostel for the purpose of the exemption to the age extension? This responsibility falls to the local authority Housing Benefit team. We suggest providers contact their local authority and offer assistance in identifying hostels that meet the criteria by supplying details of the services they run. Remember that the hostel does not have to be in the same location as the place the person is making a claim for housing benefit. Homeless UK has a database of hostels which can be searched by various fields, such as name, type and location, which may help you find the one you’re looking for http://www.homelessuk.org/details.asp?id=LP124&ds=1. How long does the ‘MAPPA client exemption’ last for? The exemption would be expected to apply for the whole period the claimant lived at that address, regardless of changes to their MAPPA level during that time. If the claimant was MAPPA 2 and their MAPPA level changed to MAPPA 1, they would continue to be exempt from the SAR extension until they left that address.3 If they were still MAPPA 1 when they left the property, they would then only be eligible for the Shared Accommodation Rate. APPLYING FOR AN EXEMPTION How does someone go about getting the exemption recognised? The responsibility to know about and apply for any exemption falls on the individual claimant. It is quite possible that Housing Benefit forms may not be updated to include reference to the exemptions. Therefore services have a big role to play in 3

MAPPA Guidance 2012 page 18 on http://www.justice.gov.uk/

informing and advising service users, and assisting them in flagging up their entitlement to an exemption. Who is responsible for proving the right to the homeless hostel exemption? The claimant is responsible for providing proof to support their claim for an exemption. Staff can support clients by ensuring they know they are eligible for this exemption. See the section below on proof. What evidence will be considered proof for the homeless hostel exemption to apply? There is no defined format of the proof needed. We recommend providers contact their local authority to find out what sort of proof their Housing Benefit department requires. It is likely that this will include:    

Details of the claimant Name of the hostel Dates the claimant resided in the hostel The claim reference from when Housing Benefit was paid to the hostel on the claimant’s behalf (you can get this from the Housing Benefit department)

What if people received support from hostels that are now closed or changed providers? As the responsibility to prove eligibility for the exemption resides with the claimant it is very important that hostels, claimants and their representatives talk to local authorities about what evidence is available and what else may be considered. For example, where the hostel has closed or changed providers a combination of the following documents may be considered as proof, e.g. hostel records, old license or tenancy agreements, Housing Benefit records, hostel directory records (such as those held in archive by Homeless Link), Supporting People records, social services records etc. Who is responsible for proving the right to the MAPPA client exemption? What evidence will be considered proof for the MAPPA client exemption to apply? It is the claimant and any relevant support agency – including Probation – that is responsible for proving the right to the MAPPA exemption. A letter from the Probation Service confirming the client’s MAPPA level will be evidence enough for the MAPPA exemption. Some support agencies that have a good relationship with their local Housing Benefit department have found that if they supply a letter confirming the client’s MAPPA level along with contact details for the client’s Probation Officer, this is also sufficient evidence for the MAPPA exemption. PARENTS, COUPLES, CURRENT SHARERS, WORKING ADULTS Does the SAR apply to parents who are single and whose children stay with them occasionally? DWP information states that those single people who do not “normally” have their children living with them will be subject to the same rules as other single people under 35 years. Does the SAR apply to couples where both are under 35? No, the SAR applies only to people claiming housing benefit as a single person.

Will the age extension apply to people 25 – 34 years in part time/low paid work who receive part HB support? Yes, they are subject to the same housing benefit rules as people not in work. MITIGATING POTENTIALLY NEGATIVE IMPACTS Use of Discretionary Housing Payments (DHP) Local Authorities do have a discretionary housing payment fund available to them. Claimants have to make an application for this fund, and the local authority will normally only pay out DHP for up to six months. As shared accommodation is often more expensive than the SAR, some local authorities will pay a top up through DHP for a period of time to allow the claimant to get back into work and afford the higher rent levels themselves. If a claimant is 34 years old and living in a one-bedroomed flat local authorities may also use DHP to top up their rent until they turn 35. FURTHER INFLUENCING WORK Both Crisis and Homeless Link continue to seek change on the SAR to ensure that Housing Benefit rules are applied fairly and do not adversely impact on people with experience of homelessness. What is Homeless Link doing about anomalies in the exemptions and the SAR more broadly? Homeless Link understands that there a number of anomalies and contradictions in the SAR guidance and exemptions as it stands. We are working with the DWP and other government departments to address these issues. In the short term we are looking at:  Supporting agencies and clients to understand criteria for and identification of hostels with regard to the age extension exemptions.  Gathering intelligence of agencies and clients’ experiences of trying to claim the exemptions.  Highlighting contradictions between the current emphasis on more selfcontained units in homelessness services from the Department of Communities and Local Government and Homes and Communities Agency and the definition of a hostel for the purposes of the exemption. In the longer term we are documenting the impact of the extension of the SAR on homeless people whilst seeking the reversal of the decision to extend the age to under 35s. We are also working with agencies to try and ensure that the SAR for younger people does not prevent them moving on to independent living. What is Crisis doing about SAR and assisting young people in the PRS? Crisis have campaigned against the SAR extension and played a key role in getting the exemptions. We continue to campaign against SAR and particularly on the lack of affordable shared accommodation available to young people, but also identify practical steps to making the policy work in challenging locations. Since 2011 we have funded a range of PRS access schemes across England that assist homeless people to find and keep a home in the private rented sector, including those who are only eligible for the Shared Accommodation Rate. Through our Sharing Solutions Programme we are supporting eight private rented access schemes across the country to focus on improving the access to shared private rented sector accommodation for homeless people, with a view to sharing best

practice from these schemes. Best practice and learning from all our campaigning work and work with schemes in the private rented sector can be found at http://www.crisis.org.uk/pages/crisis-private-renting.html.