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 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 your next payslip with no bonus. You should check this with your Council’s Housing Benefit office.
How to Report: 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:
http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance