Homes for Ukraine — impact on benefits
Answering questions clients may have on Homes for Ukraine.
What is ‘Homes for Ukraine’?
A scheme to host those fleeing Ukraine. Phase one of Homes for Ukraine began on the 18th March.
The first phase matches up named sponsors and guests — the home provider (‘sponsor’) is asked to name the person (‘guest’), and vice versa, when they apply.
You can apply from anywhere in the UK. In Scotland and Wales the schemes differ slightly because the Scottish and Welsh Governments will directly sponsor a number of Ukrainian guests.
Sponsors will be paid £350 per month in arrears as a ‘thank you payment’. One payment per residential address regardless of the number of guests.
Councils will provide the payments for (up to) the first 12 months of sponsorship and can also offer a £200 interim payment for guests along with other support.
Not to be confused with the Ukraine Family Scheme, where someone applies to join a UK-based family member. Homes for Ukraine is intended for those ‘seeking sanctuary with no family ties to the UK’.¹
This article will answer questions hosts may have about their benefits. Please see Kate Smith’s article Benefit entitlement for people who’ve arrived from Ukraine for questions surrounding benefit entitlement of guests.
Q1. Will the £350 thank you payment be classed as income for my benefits?
A1. No
The government has confirmed, in a written answer² and Department for Work and Pensions (DWP) guidance³, that the payments will be classed as local welfare provision.
This will allow it to be disregarded for Employment Support Allowance (ESA), Jobseekers Allowance (JSA), Income Support (IS) and working-age Housing Benefit (HB).⁴
It is not in the list of the types of income to be taken into account for Universal Credit (UC), Pension Credit (PC) and Pension-age Housing Benefit (HB) and so will be disregarded.
For Tax Credits (TC) the payments have been added to a list of income to be disregarded.⁵
Q2. If I take on a guest will I lose my Severe Disability Premium (SDP)?
A2. No.
In its guidance the DWP confirms
‘As the Ukrainian national and their family members, if applicable, are living temporarily with the host they are not considered to be normally residing with them.
This means that the host will not lose their entitlement to the severe disability premium.’
‘Temporarily’ has not been defined and it is unclear if it will apply should the guest stay beyond 6 months. So it is important for clients to check this with their benefit providers.
Q3. If I take on a guest will this mean I am no longer subject to an under occupancy deduction (‘spare room subsidy/bedroom tax’) for the room(s) they’ll occupy?
A3. No.
The DWP guidance states that the scheme would not alter how many bedrooms a claimant is entitled to, so the bedroom tax will continue to apply.
This will also mean that private sector clients cannot get a larger Local Housing Allowance (LHA) because of the guest(s).
Q4. Will having a guest add a non-dependant deduction to my benefits?
A4. No.
As above, the DWP have said that due to the temporary nature of the scheme, the guests will not be considered as ‘normally residing’ with the hosts, and so no non-dependant deduction applies.
It is not clear exactly what they consider as ‘temporary’, for example if it will apply should the guest stay beyond 6 months. So it is important for clients to check this with their benefit providers.
Q5. Can the guests claim benefits in their own right?
A5. Yes.
Those arriving under the scheme will have recourse to public funds.
Legislation⁶ has also been made so that those fleeing the invasion can claim benefits and be exempt from:
- the Habitual Residence and Past Presence Tests (HRT and PPT)
- the 3-month residence requirement for Child Benefit (the ‘living in’ test)
This also applies to non-Ukrainian citizens, such as UK citizens who were there at the time⁷.
The only requirements are that the claimant:
- was in Ukraine immediately before the 1st January 2022
- left Ukraine due to the invasion
- has a right to be in the UK (i.e under a visa)
Q6. If I give money to the guest, could I be seen to have deprived myself of my capital?
A6. There is nothing to say that it couldn’t be deprivation, so the normal test would apply and it is a possibility.
You can read more about how this is considered in our article on Deprivation of Capital.
Q7. What about Council Tax? Will this impact my single-person discount, be considered income or give me a non-dependant deduction?
A7. The Homes for Ukraine FAQ says
‘Council tax discounts will not be affected if you sponsor and host a Ukrainian household in your home’
England and Wales have regulations⁸ protecting the single person discount, but the questions about income and non-dependant deductions are subject to discretion⁹. Council Tax Reduction is not a nationally administered benefit, each area can have their own rules, so it is best to check with the local authority.
Q8. What if I need to leave the scheme early, will I be overpaid and will I need to pay it back?
A8. If hosts need to end their participation in the scheme early, they are urged to let their local council know as soon as they can.
As the payment is made in arrears, overpayments are not likely to occur, but if they do then they may be recoverable. The claimant would need to check with their local authority.
Q9. How does this compare to the Ukraine Family Scheme?
A9. If a family member takes someone into their home under the Ukraine Family Scheme, they will not receive the £350 payment.
In a message to stakeholders the DWP have indicated that these family members will also be treated differently for other benefits tests, including being treated as non-dependant.
If a client is unsure what support they can get, they can contact their council and seek benefits advice.
See Kate Smith’s article Benefit entitlement for people who’ve arrived from Ukraine for questions surrounding benefit entitlement of guests.
Alice Buchanan works as a Welfare Benefit expert in the Expert Advice team at Citizens Advice.
The information in this article is correct as of the date of publication.
Unfortunately, we are unable to respond to comments left on the medium site — please contact expertadvicesupport@citizensadvice.org.uk if you wish to give feedback on an article.
References:
1. Homes for Ukraine details in the ‘Immigration information for Ukrainians in the UK, British nationals and their family members’ Home Office guidance.
2. Written answer on 23rd March stating that the £350 Homes for Ukraine payments will be classed as local welfare provisions
4. Disregarded due to Schedule 8 para 35A The Employment and Support Allowance Regulations 2008, Schedule 7 para 33A Jobseekers Allowance Regulations 1996, Schedule 9 para 31A of The Income Support (General) Regulations 1987 and Schedule 5 para 31A Housing Benefit regulations 2006.
5. The Child Benefit and Tax Credits (Amendment) Regulations 2022 amends Tax Credit regulations to add the Homes for Ukraine payments to income disregards in table 6 of regulation 19 of The Child Benefit and Tax Credits (Amendment) Regulations 2022.
6. The Social Security (Habitual Residence and Past Presence) (Amendment) Regulations 2022 and The Child Benefit and Tax Credits (Amendment) Regulations 2022
7. Confirmed in paragraph 6 of DWP guidance ADM 11/22 and DMG 8/22
8. The Council Tax (Discount Disregards and Exempt Dwellings) (Amendment) (England) Regulations 2022.
9. Homes for Ukraine — discretionary discounts under the Local Government Finance Act 1992
