Benefits question..

[Scarlett]

I am renting out my house and the tenant has just been made redundant. He has only been there less than a month! I know he is obliged to pay the 6th months, and has a guarantor, but is he allowed to claim housing benefit and sign on as a jobseeker? I was thinking of getting a tenant who was a single parent maybe, on benefits, as this seems more reliable than someone who has a job, at the moment.
Any ideas?
Thanks in advance.

[Buenchico]

Your tenant can 'sign on' and claim Jobseeeker's Allowance. If he's paid enough National Insurance, he'll receive Contribution-Based JSA for up to 6 months. (�47.95 per week if he's under 25. �60.50 per week otherwise). If he's not paid enough NI (or after 6 months) he'll receive Income-Based JSA. (The rates are the same but, unlike C-B JSA, they'll be reduced if he's got savings of over �6000).
http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/BenefitsTaxCreditsAndOtherSupport/Employedor lookingforwork/DG_10018757

New claimants for assistance with housing costs (in privately rented accommodation) now receive Local Housing Allowance, which has replaced Housing Benefit:
http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/BenefitsTaxCreditsAndOtherSupport/On_a_low_i ncome/DG_10018928

He can calculate the amount he's eligible to receive, here:
http://lha-direct.therentservice.gov.uk/

Your tenant should also apply for Council Tax Benefit.

Chris

[tell-me-more]

Does anyone know how much is enough National Insurance? I can't believe I haven't paid enough, but I was assessed only for Income based JSA for the short time I was out of FT employment.

This meant that I ended up worse off for having worked to the tune of about �1500

[Ethel]

Read appoximately one third down this page for info re contributions for JSA
http://www.covlaw.org.uk/welfare/leaflets/leaf let14.html

[Richard1966]

Just to point out. Some one on income based JSA will automatically qualify for full Local housing allowance. However full LHA may not cover the full rent charged as their are restriction relating to under occupancy of properties, i.e a single person living in a three bed property would have a restriction to the average rent for that area for a one bed property. There can also be restrictions if the rent is unusually high for the area and again the local average will be used.

[Ethel]

That is true, Richard

And a person on contributions based JSA may be entitled to no other benefits

[SizzleSquid]

to make some of the above ansdwers more simple-yes if you sign on you are allowed to claim housing benefit. you are also allowed to claim it if you are on a low income depending on how much you get paid. if he has had a redundancy payout above �8000 he wont normally be able to claim, if not he should be fine. in regards to accepting people on benefits-check first how much the maximum amount the council will be willing to pay rent on for your property-it depends how many rooms you have.

[Scarlett]

Thanks everyone for your answers!