Post
by Althalus » Fri Sep 13, 2013 2:13 pm
It's neither. I did some research on this some time ago before applying for my tier 2 extension. Seems benefits and reductions are means-tested. Also the layman term "25% discount/reduction" they use for this reduction, does not exactly match the definition of "reductions" according to some law (I don't remember now which one now).
If I am not mistaken (someone correct me if I am wrong), it turns out they consider reductions as "discretionary reductions" - where you have to present a case before a judge to get them approved.
And benefits are means-tested.
The 25% single-occupancy discount falls in neither of these categories as it's something offered to everyone. Even a millonaire could claim it if he lived alone in a mansion.
In practice, I have applied for a Tier 2 extension, whilst claiming 25% discount for single-occupancy and I have had no problems whatsoever. I have had some home office checks carried on me some time afterwards after some problems with my visa, and they turned out fine even as well.
Furthermore, the second link manci mentioned, page 8, states that single person discounts are not considered public funds.
I think you will be safe ticking "no" in all the relevant boxes.