Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will change the housing benefit criteria for small business owners so that only the owner's income is taken into account in the first year of the business making a profit.
As Housing Benefit is an income-related benefit, regard is normally had to all forms of income, including from self-employment, when assessing entitlement. The net profit figure used in the calculation of Housing Benefit is obtained by deducting any expenses wholly and exclusively incurred for the purpose of the employment, from the gross receipts of the business. This includes capital and interest repayments on loans used to replace existing equipment and machinery. The value of the assets of a business is disregarded when calculating a person’s capital while the business is continuing. No income is taken into account where there are no net profits.
The Government believes that the current rules are working in accordance with the policy intention and there are no plans to amend them.