Doubting benefit

Im a single parent currently living with my child at my parents house. I have unsuccessfully tried to get rehoused.

My parents are moving out of the house with a view to renting it out and are willing to rent it to me. Would I be able to claim housing benefit? I need to know before I can give them a decision.

A person can normally claim housing benefit if they are on a low income or are claiming benefits. Whether or not they will be entitled to this will depend on their personal circumstances.

To be entitled to housing benefit you must be able to show that you meet the following conditions:

• You have a low income and savings below a certain amount;
• You are responsible for paying rent for your accommodation;
• You occupy the accommodation as your home

Some people who pay rent to a close relative are not entitled to claim housing benefit. This rule applies where they live with the relative they pay rent to. This rule shouldn't affect your claim if your parents aren't living with you.

But, the housing benefit department may decide that you are not entitled to housing benefit if they think the arrangement with your parents is a 'non-commercial agreement'. This means they may believe the agreement with your parents is set up solely so that you can claim housing benefit and your parents wouldn't rent this property out to anyone else.

If the housing benefit department says you are not entitled to housing benefit you may be able to appeal against the decision. If this happens to you, seek further advice.

Updated: 26/09/2008

Question answered by Shelter