Housing and Council Tax Benefit changes from April 2011
Changes to Housing Benefit
from April 2011
The Government is planning to change the Local
Housing Allowance rules from April 2011. At present we cannot
give you specific advice as to how you might be affected but the
information below is based on the announcements made by the
Government.
The changes
From 1 April 2011 the Government plans to:
·
Introduce caps that Local Housing Allowance weekly rates in any
area cannot exceed
·
Remove the five bedroom Local Housing Allowance rate so that the
maximum level is for a four bedroom property
·
Make a change to help disabled people who have a carer who stays
overnight but who doesn’t normally live with them. The change
means that your Housing Benefit will take into account the cost of
an additional bedroom providing you rent a property, which has a
bedroom for your carer
· Reduce all Local
Housing Allowance rates 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
· End the maximum
£15 weekly Housing Benefit excess that some customers can receive
under the Local Housing Allowance arrangements
The questions and answers below are intended
to explain in more detail how the changes are likely to effect
Housing Benefit entitlement.
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.
Your Housing Benefit 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.
The anniversary of your claim
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.
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
these 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 to:
· £250 per
week for a one bedroom property
· £290 per
week for a two bedroom property
· £340 per
week for a three bedroom property
· £400 per
week for a four bedroom property (or larger)
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
Different rules may apply if you are
under 25 or live in shared accommodation. Contact your
local authority for further information.
The maximum allowance is for four bedrooms
from 1 April 2011.
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’m 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 from April 2011 could lead to a reduction in the shared room
rate.
I’m living in a self contained studio flat what rate
applies to me?
The one bedroom Local Housing Allowance rate
will apply to you. If you are under 25 then different rules may
apply and you should contact your local authority for further
information.
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.
How will I know what the Local Housing
Allowance rates will reduce to from April 2011 and if I am thinking
of renting and claiming Housing Benefit, how much rent should I
agree to pay?
There is information available about the
levels of Local Housing Allowance rates that might apply based on
current rent levels. You can go to the following website:
· http://www.voa.gov.uk/LHADirect/lha-rates-england.htm
This information will give you an idea of the
amount of rent that might be met by Housing Benefit. The figures
are estimates and will be updated regularly. Rent levels and
rates may change between now and April 2011.
The rent I am paying now is likely to
be more than the Housing Benefit I will get when the changes come
in. 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’s going to be difficult to move, is there any other
help?
Your 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 and any such
payments are only a short term measure to help you make alternative
arrangements.
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 at your local
authority will write to tell you if your entitlement changes.
You should consider speaking to your landlord about the
changes.
This webpage was updated on
1/10/2012