Changes to Housing Benefit from April
2011
From 1st April 2011, the rules are
changing on how local housing allowance (LHA) is calculated. If you
are renting from a private sector landlord and are claiming housing
benefit, the amount you receive is likely to be reduced. You will
need to make up any shortfall from your other income or savings, or
may have to consider moving to a more affordable home, or asking
your landlord to reduce the rent.
If your claim for housing benefit (based on
LHA) was made before April 2011, you will usually not be affected
straight away. New rules will apply to new claims made after 1st
April 2011 and further changes are expected in April 2012 and
2013.
Will I be affected by the changes?
If you are renting from a private landlord and
you made your claim for housing benefit at your current address on
or after 7th April 2008, it is likely that you will be affected by
these changes.
You will not be affected by the changes if all
of the following apply:
- you made your claim before 7th April 2008, and
- you have not moved since, and
- there has been a change
Do these changes affect housing association tenants and
owner-occupiers?
No, only housing benefit claims from tenants
of private landlords are affected.
The only change that may affect you will be
the increase in non dependant deductions.which are now very
high
When will these changes affect me?
Some changes may affect you from 1st April
2011, and others may be delayed.
If you make a new claim for housing benefit
(based on LHA rates) from 1st April 2011, the changes will usually
affect you from the date of your new claim.
If your circumstances change after 1st April
2011, so that you are entitled to housing benefit for a smaller
home (for example someone in your family leaves home), the new
rules will apply and your LHA will be reassessed at the lower
rates.
Many of the changes will take effect on the
anniversary of your claim, when your entitlement is re-assessed.
For example, if your claim was made on 2nd May 2010, the
anniversary will be 2nd May 2011. This means the changes will not
affect everyone at the same time.
In some cases, if you are worse off as a
result, your housing benefit will be calculated on your pre-April
2011 rent level instead of using the new, lower levels straight
away. This protection can last for up to nine months. After this,
your housing benefit will be calculated under the new rules and
your benefit may be reduced.
For example:
- If your claim was made in April 2010, the anniversary of your
claim will be in April 2011. The reduction in your benefit
resulting from the new rules could be delayed until nine months
after this in January 2012.
- If your claim was made in March 2010, and reassessed in March
2011 under the old rules, it will be due for review under the new
rules in March 2012. The reduction in your benefit resulting from
the new rules could be delayed until nine months after this in
December 2012.
After 1st April 2011, there will also be some
protection for people whose family size increases, or in some
circumstances where someone has died.
Details are provided below for when you are
likely to be affected by the changes. This is just a guide – you
may need to seek advice. Please contact us for
more information.
Changes from 1st April 2011
The changes below are based on changes to the
law which take effect from 1st April 2011.
An end to ‘Excess’ payments
Under the previous system, you could be
paid housing benefit of up to £15 a week more than your rent and
keep the difference. This happened only if your rent is lower
than the appropriate local housing allowance rate.
- If you currently claim local housing allowance, your excess
payment will end on the anniversary of your claim (or sooner if
there is a change in your household circumstances).
- If you make a new claim from 1st April 2011, your claim will be
assessed under the new rules.
Only 30 percent of properties will be
affordable
From 1st April 2011, maximum local housing
allowance rates will be reduced so that only three out of ten
properties for rent in any area will be affordable for people
claiming housing benefit.
This means that, unless your rent is already
one of the lowest 30% in your area, the maximum LHA you can be paid
will be less than your rent. If you want to avoid rent arrears, you
will have to make up the difference.
- If you are already claiming housing benefit (based on LHA),
this change will affect you up to nine months after the anniversary
of your claim. During this period you will need to consider your
options and seek advice. Unless you can make up any shortfall, you
may have to consider moving somewhere more affordable.
- If you make a new claim from 1st April 2011, you will be
affected straight away.
Each month the latest
LHA rates can be found on our website.
This information is also on the valuation office agency website.
Direct payments to landlords
The rules about when we can pay your housing
benefit to your landlord are changing. From April 2011, as well as
the existing rules, we can pay your landlord where they have
reduced your rent, normally to the LHA level and this secures or
retains your tenancy.
If you currently have your housing benefit
paid directly to yourself and think that this change means you
could have it paid to your landlord please contact us on 01562
732928
New caps on weekly local housing allowance
rates
A national maximum weekly rate of housing
benefit will be introduced, based on the number of bedrooms
your household qualifies for:
- £250 for a one bedroom property
- £290 for a two bedroom property
- £340 for a three bedroom property
- £400 for a four bedroom property.
These changes do not currently affect any
properties in this area.
LHA maximum now four bedrooms
This change will affect larger
households. Local housing allowance rates currently include a
maximum payment for up to 5 bedroom properties. From 1st April
2011, the rates are limited to payments for a maximum of 4
bedrooms.
- If you receive the five bedroom rate before 1st April 2011,
your benefit will be reduced up to nine months after the
anniversary of your claim.
- If your circumstances change, eg your household becomes
smaller, your benefit will be reassessed and the new rules will
apply.
- If you make a new claim for LHA from 1st April 2011, the
maximum you can be paid will be the four bedroom rate.
If you need a larger property, you can still
look for properties with more than four bedrooms, or other rooms
that can be used as bedrooms. However, your maximum housing benefit
will be calculated based on the four bedroom rate in that area, so
a shortfall is likely to develop unless the property is cheaper
than usual for the area. If you get into rent arrears, you could
lose your home.
The LHA
Direct website has a calculator which you can use to
work out how many bedrooms your household is entitled to.
Increased deductions from benefit if you have
non-dependents
If you share your home with any adults who are
not dependent on you – for example, adult sons or daughters,
parents, relatives or friends, your benefit may be reduced – as it
is assumed that they should pay something towards your rent,
whether they actually do so or not.
This may affect you if you share your home
with other adults unless they are:
Non-dependent deductions will be increased
from April 2011, and your benefit will be reduced as a result from
April 2011. You will have to make up any shortfall.
You may need to ask these other adults in your
home to contribute more towards your housing costs.
Extra room allowed for disabled people who need
overnight care
If you or your partner are disabled and you
need a carer – who doesn’t normally live with you – to stay
overnight, you may qualify for help towards paying for an extra
bedroom. You will need to show that:
- you have the extra bedroom in your home available for the carer
to use
- care is required
- care is provided.
Please tell us if you have an overnight carer,
so that we can look at your claim again. If you are already getting
housing benefit and qualify for this extra help, you will be
entitled to it from April 2011.
This change will apply to all private tenants,
including those which are not based on local housing allowance
rates.
Will I have to move?
You could find that moving to a more
affordable property may be the only way to ensure that your rent is
affordable in the long-term. This may even mean moving to a
different area. Do not wait until you have rent arrears to look for
cheaper properties.
What if I can’t pay the shortfall?
These changes will reduce the amount of help
you get towards your rent.
It may become difficult for you to make up the
shortfall between the reduced amount of benefit you receive, and
the rent you have to pay. It is likely that some private tenants
will fall into rent arrears. If this happens to you, you will need
to act quickly to avoid the risk of eviction. It may be possible
to:
- talk to your landlord about reducing the rent
- apply for a
Discretionary Housing payment to help make up the
shortfall
- ask non-dependents to increase their contributions to the
rent
- find somewhere more affordable
View LHA
rates