Housing Benefit Considerations When a Live-in Carer Joins the Household

If your loved one rents their home and receives Housing Benefit, it is sensible to wonder whether having a live-in carer move in might affect it. Nobody wants an unwelcome surprise with their finances at an already busy time.

The good news is that, for most older people, the answer is reassuring. But as with anything to do with benefits, the details matter and depend on individual circumstances. Here is a clear guide to the main considerations. This is general information, and we will point you to the right people to check your own situation.

First, who Housing Benefit is for

A quick point to clear up first. Housing Benefit helps people on a low income pay their rent. For most working-age people it has now been replaced by Universal Credit, but people over State Pension age can still claim Housing Benefit.

Importantly, Housing Benefit is about rent. If your loved one owns their home, it does not apply to them, though there is separate help available towards mortgage interest for some people. So the considerations here mainly matter if your loved one rents their home.

Good news on the "bedroom tax"

One common worry is the under-occupancy reduction, often called the "bedroom tax," which can reduce Housing Benefit for social housing tenants who have a spare bedroom. Families sometimes worry that a room used by a carer might count against them.

Here is the reassuring news: people who have reached State Pension age are fully exempt from the bedroom tax. It simply does not apply to them. So an older person of pension age will not have their Housing Benefit reduced for having a spare room, including one that a carer might use.

The extra bedroom for a carer

For those who are not exempt, in other words working-age claimants affected by the bedroom tax, or those renting privately whose Housing Benefit is based on the number of bedrooms they are entitled to, there is a helpful rule worth knowing.

An extra bedroom can be allowed for a carer who provides overnight care, where the person needing care receives a qualifying disability benefit, such as Attendance Allowance or the daily living part of PIP. There is an important detail here, though: this particular rule is designed around a carer who does not normally live with the person, a non-resident carer who stays over. The position for a fully resident live-in carer is considered differently, which brings us to the next point.

Live-in carers and "non-dependant deductions"

This is the consideration most relevant to a live-in carer, so it is worth understanding.

Normally, when another adult lives in the household of someone receiving Housing Benefit, a "non-dependant deduction" can be made. The rules assume that the other adult contributes towards the rent, and reduce the Housing Benefit accordingly.

But here is the key and reassuring point: no non-dependant deduction is made if the person claiming Housing Benefit, your loved one, receives Attendance Allowance, the daily living part of PIP, or the care component of DLA. Because most people who need live-in care receive one of these benefits, having a live-in carer in the home typically will not reduce their Housing Benefit through a non-dependant deduction. That removes the concern for a great many families.

It does depend on the circumstances

In the interests of being straight with you, the rules in this area are genuinely nuanced, and the exact position depends on several things: whether your loved one rents from a council or housing association or privately, their age, which benefits they receive, and whether their carer is resident or non-resident.

So while the general picture is reassuring for most older people who rent and receive a disability benefit, the golden rule is to check your loved one's specific situation rather than assume.

Tell the council, and get advice

Two practical steps. First, it is wise to inform the local council when someone new joins the household, as you should with any change in circumstances that could affect a benefit. Being open avoids problems later.

Second, for anything you are unsure about, free and expert help is available. Age UK and Citizens Advice can check your loved one's particular circumstances and tell you exactly where they stand, and the council itself can advise on how a change affects a claim. It is always better to check than to guess.

Reassurance, with a caveat

For most older people who rent their home and receive a disability benefit, having a live-in carer join the household is unlikely to reduce their Housing Benefit, thanks to the pensioner exemption from the bedroom tax and the rules around non-dependant deductions. That said, because circumstances vary, it is well worth confirming the specifics for your loved one.

Our guides to Attendance Allowance and your funding options may help you understand the wider benefits picture. And if you would like to talk through the practicalities of arranging care, we would be very glad to help.

Book a free care advice call, or give us a ring on 020 3970 9900.

This guide offers general information only and is not benefits or financial advice. Benefit rules are complex, depend on individual circumstances, and change over time. Please check your loved one's specific position with their local council, or seek free specialist advice from Age UK or Citizens Advice.