Spot the difference! There is a bit of confusion between Rent Relief, Rent Allowance and Rent Supplement. Some think Rent Relief and Rent Allowance are the same and others think that Rent Allowance and Rent Supplement are the same... however all three are different! It is quite easy to get them all mixed up though... heaven knows I"ve gotten them in a knot ... a few times before getting it right. So let me summarise;
Rent Relief: This is tax relief that you can claim if you are paying for rent in private rented accommodation which is used as your sole or main residence.
Rent Supplement: This is a social welfare payment. If you are unemployed you maybe able to receive a rent allowance payment to help you meet your monthly rent payments. A few terms and conditions apply:
- Before receiving this supplement you will undergo a means test
- You must be living in the residence for at least 6 months to be able to receive the payment.
Where the confusion lies is that Rent Supplement is usually refer to / called "Rent Allowance".
Rent Allowance
Rent Allowance is a Social Welfare Scheme - but an old payment that only applies to people affected by the de-control of rents back in 1982. Very few people would still be receiving this type of payment and there are no new applications i.e. it"s a close case payment.
Hope this has cleared some stuff up! I"ll blog about each more in-depth over the next week.