Guidance

Section 12: Extended payments of Housing Benefit

Published 21 April 2021

Note: For more information, see HB/CTB Circular A12/2008 on Extended Payments.

Extended payments

1600. Housing Benefit (HB) extended payments (EP) were introduced on 1 April 1996 as part of a package of incentives to encourage the long-term unemployed to return to work.

1601. Extended payments are made to certain people who have been receiving Income Support (IS) or income-based Jobseeker’s Allowance (JSA(IB)) and who cease to be eligible for it because they or their partner start employment or self-employment, or increase their hours or wages.

1602. The EP scheme was widened in April 2004 (by S.I. 2004/319) to include persons in receipt of Incapacity Benefit (IB) and/or Severe Disablement Allowance (SDA), and who cease claiming benefit because they or their partner move into employment, or self-employed work, or increase their hours or earnings.

1603. Employment & Support Allowance (ESA) was included as a qualifying benefit from 6 October 2008 and other reforms to the scheme were made by S.I.2008/1082.

1604. Since October 2008, a move into work which results in entitlement to an EP is treated as a change of circumstances on the existing HB claim. The LA must consider whether there is entitlement to an EP when a qualifying benefit ceases for work-related reasons. The LA must also consider whether there is entitlement to in-work HB. Customers are not required to make a claim for in-work HB at the end of the EP period and they can move into in-work HB provided there is entitlement to it at the end of the EP period. Jobcentre Plus isn’t required to certify to the LA that any of the qualifying conditions for an EP have been satisfied. When a customer moves from one LA to another during the extended payment period, the original LA is responsible for paying the extended payment to the customer. HB/CTB Circular A12/2008 provides full details of the revised EP Schemes.

1605. If there is entitlement to an EP, and there is also entitlement to in-work HB during the EP period, the EP can be increased to the in-work rate of HB if it is higher than the EP rate.

1606. If the EP is increased as a result of the rate of in-work HB being higher than the original EP rate, this is still classed as an EP.

1607. For example EP rate for weeks 1 and 2 is £50.00. Weeks 3 and 4 of EP – the rate of in-work HB is calculated as £70.00 which is higher than the rate payable for the first two weeks. This is regarded as an EP. Therefore, the EP payments made for the whole of the EP period are: Weeks 1 & 2 - £50.00 per week and for weeks 3 and 4 at £70.00 per week.

1608. Where a claimant’s housing benefit in the benefit week with respect of which the extended payment is to be calculated is reduced in accordance with a deduction for the benefit cap, the extended payment must be calculated using the amount of housing benefit before any such reduction is made.

1609-1609

Subsidy for extended payments

1610. Extended payments are treated as a separate HB category on which full subsidy will be paid. This means that, for example, if the rent allowance paid immediately before the extended payment period included amounts attracting lower rate subsidy, a similar subsidy reduction will not be made for rent allowance paid during the extended payment period.

1611-1619

Subsidy for overpayments of extended payments

1620. An overpayment of extended payments can occur when, for example:

• the authority incorrectly decides that an award is appropriate
• HB is not reassessed to reflect a change of circumstances, occurring before the extended payment period, until after the extended payment has been awarded. This could occur when a non-dependant moves into the household prior to the cessation of IS/JSA(IB)/ESA(IR)/IB/SDA/ESA(C)

1621. If an overpayment arises, the rate of benefit subsidy payable will be in accordance with normal rules, depending on the reason for the overpayment.

1622. An overpayment could also arise where the claimant moves home, during the extended payment period, to another authority’s area. The original LA is responsible for calculation and payment of the EP provided entitlement exists in the new LA.

1623-1629

Queries

1630. If you have any queries concerning the content of this section, please contact: HBSUBSIDY.QUERIES@DWP.GOV.UK