Changes to Housing Benefit from April 2011
Legislation was laid in Parliament on 30 November 2010 regarding changes to Housing Benefit that came into effect from April 2011. Details of these changes are as follows:
Local Housing Allowance (LHA)
From 1 April 2011 the way that the maximum rent (LHA) is calculated is changed so that
- The £15 weekly Housing Benefit excess that some customers can receive is removed
- The maximum LHA rate is for a four bedroom property instead of a five bedroom property
- LHA weekly rates in any area cannot be more than
· £250 for a one bedroom property
· £290 for a two bedroom property
· £340 for a three bedroom property
· £400 for a four bedroom property
- LHA rates are set at the 30th percentile of rents in the area rather than at the median so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than every 5 in 10 properties as now
These changes will affect new customers from 1 April 2011. Existing customers will normally be affected from the anniversary of their claim but could receive up to 9 months transitional protection.
Additional bedroom for non-resident carers
From 1 April 2011, there is a new provision that permits an extra bedroom to be included in the Housing Benefit assessment for tenants in the private rented sector. This will only apply where:
- The customer or partner has an established need for overnight care
- That care is provided by someone outside of the household
- The customer occupies a property that has an additional bedroom for the sole purpose of a carer/team of carers to use overnight
Where the customer resides in a four bedroom or larger property, they will not benefit from this change because the maximum LHA rate has been restricted to a four bedroom rate.
(If you believe that the extra room allowance may apply to you, please contact the benefits section on 01256 810680 or email benefits@basingstoke.gov.uk for further advice.)
Questions and Answers
Will I be affected by the changes to Local Housing Allowance rates?
If you are renting from a private landlord and you made your claim for Housing Benefit at your current address on or after the 7 April 2008 it is likely that you will be affected by these changes.
I have been getting Housing Benefit since before April 2008 could the changes affect me?
Providing you continue to live in the same property and you don’t have a break in your Housing Benefit claim the Local Housing Allowance arrangements will not apply to you.
Will I be affected by the caps?
The caps are most likely to affect people who are renting properties in central London boroughs. If your weekly rent is more than the cap for the Local Housing Allowance rate that applies to you, your Housing Benefit will be reduced.
How do I know which Local Housing Allowance rate applies to me?
You can use the following information as a guide to work out how many bedrooms you are allowed. You are allowed one bedroom for:
· every adult couple (married or unmarried)
· any other adult aged 16 or over
· any two children of the same sex aged under 16
· any two children aged under 10
· any other child
The maximum allowance is for four bedrooms from 1 April 2011.
Different rules may apply if you are under 25 or live in shared accommodation. Contact your local authority for further information. Further information about this is on the LHA Direct website.
From January 2012 if you are single with no dependant children and are aged under 35 you will only be entitled to the shared room rate even if you occupy something larger.
I need a property with more than four bedrooms. Will I only get benefit at the four bedroom rate?
The maximum Housing Benefit you get will be based on the four bedroom rate. You can still look for properties with more than four bedrooms, or other rooms that can be used as bedrooms, with rents that are within the four bedroom rate.
I am sharing a house with other people will the changes to Local Housing Allowance rates affect me?
The new way of setting Local Housing Allowance rates could lead to a reduction in the shared room rate.
I am living in a self contained studio flat what rate applies to me?
The one bedroom Local Housing Allowance rate will apply to you.
I am already getting Housing Benefit when will I be affected by the changes?
If you are already getting Housing Benefit you will not normally be affected until the anniversary of your claim. But if there is a change in your household such as someone leaving or someone coming to live with you or if you move the changes could apply sooner.
When is my anniversary date?
Your anniversary date is the date you first made your current claim. For example, if you claimed Housing Benefit on 5 September 2008 your anniversary date is 5 September.
This means that the changes the Government is making from 1 April 2011, such as removing the £15 excess or capping Local Housing Allowance rates, could affect you from 5 September 2011. The changes it is making from 1 October 2011 could affect you from 5 September 2012.
The rent I am paying now is likely to be more than the Housing Benefit I will get. What should I do?
You can talk to your landlord about the changes and see if they will drop the rent on your property. If that isn’t possible you could start looking for somewhere cheaper. You might want to talk about your situation with your local authority housing options team and Housing Benefit department or the Citizens Advice Bureau.
My landlord won’t reduce my rent and it is going to be difficult for me to move is there any other help?
The local authority can help some people with a Discretionary Housing Payment to meet the gap between their benefit entitlement and the rent they pay. The amount of money available for these payments is limited so your authority will have to consider your circumstances carefully.
My Housing Benefit is paid directly to my landlord, what should I do if my Local Housing Allowance rate is reduced? Or how will I know that the amount paid to my landlord will still meet my rent?
The Housing Benefit department will be able to give you information. You might find it helps to talk to your landlord about the changes.
I am getting an excess between my rent and my Local Housing Allowance rate. Will I stop getting this?
If you are getting an excess it will stop from your anniversary date following 1 April 2011.
Do I have to be getting Housing Benefit under the Local Housing Allowance arrangements to get the allowance for another bedroom for an overnight carer?
No. This change applies to all tenants who meet the qualifying conditions and live in privately rented accommodation no matter how their Housing Benefit is worked out.
I think I will be due an increase in my Housing Benefit because I have a carer who stays overnight – who should I tell?
Make sure that your local authority knows you have an overnight carer so that they can look at your Housing Benefit entitlement again. You must already have an extra bedroom in your home available for the carer to use before you get this help. If you are already getting Housing Benefit and meet the conditions for this extra help you will be entitled to it from the date the legislation becomes effective.
What about extra rooms for other circumstances such as disabled children, couples that cannot share a room or where extra space is needed for medical equipment?
The change only applies where the person making the Housing Benefit claim, or their partner, needs overnight care.
