People in receipt of rent or mortgage interest supplement are required to contribute towards their rent or mortgage interest costs. The minimum contribution is £6 per week which applies to people whose means are equal to the basic supplementary welfare allowance rate, currently £65.40 per week for a single person. People who have assessable means in excess of the appropriate basic supplementary welfare allowance rate are required to contribute £6 plus the amount of means in excess of the appropriate basic supplementary welfare allowance, SWA rate.
For example, people on long-term unemployment assistance receive £2.10 more than the relevant SWA rate and are required to contribute a total of £8.10 per week, £6.00 plus £2.10, towards their rent or mortgage interest costs. People on one parent family payment who have two children receive £6.10 more than the relevant SWA rate and are required to contribute a total of £12.10 per week, £6.00 plus £6.10, towards their rent or mortgage interest costs.
Under the rules of the community employment, scheme, participants are paid a set weekly wage which is generally greater than the social welfare payment that they formerly received. However, the amount of rent supplement payable is calculated on the basis that all participants contribute a standard minimum contribution of £8.10 per week towards their accommodation costs. In practice, this means that a higher rate of rent supplement is payable than would be the case under the standard means test which applies to other applicants for rent supplement.
When participants finish a particular CE programme, they are then subject to the normal means test which is less favourable than that which applies while they are on the CE scheme. This can result in a reduction in rent supplement to the standard levels applicable to people in similar household and financial circumstances.
In the normal course, former CE workers who are solely dependent on a social welfare payment should continue, where appropriate, to receive a rent supplement although they may qualify for a lower rate than that received while participating on the CE scheme.