How your housing benefit is affected
Housing Benefit is reduced by 65% of your income, so if you receive a bonus of £1,000, after tax and National Insurance, your Housing Benefit will be reduced by 65% x £1,000 = £650.
Some Councils allocate the bonus payment to the period in which it was earned, so a bonus for the calendar year 2024 will be allocated to cover that calendar year, and you may be deemed to have been overpaid and have to make a repayment.
If the bonus is allocated to the month in which you received it and means you are due no Housing Benefit that month, you may need to make another claim when you receive you next payslip with no bonus. You should check this with your Council’s Housing Benefit office.
Reporting one-off payments
Inform your Council’s Housing Benefit department immediately of any change of income. After a one-off payment, ask if you will need to make a new claim.
For more advice see Shelter’s website: https://england.shelter.org.uk/housing_advice