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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

 

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Tannery Lane, Ashford TN23 1PL
Telephone: 01233 331111
Email: customer.care@ashford.gov.uk or view our contact us page.
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