Changes to Housing Benefit in April 2011

There are important changes being made to Local Housing Allowance (LHA) from 1 April 2011.

These changes will affect anyone making a new claim for Local Housing Allowance from 1 April 2011 and also existing customers who are in receipt of Local Housing Allowance. The changes do not affect tenants who rent property from Housing Associations.

From April 1st the following changes are being made

• All Local Housing Allowance rates will be reduced so that about three in ten properties for rent in the area will be affordable to people on Housing Benefit, rather than five in ten properties as now.
• The maximum £15 weekly Housing Benefit excess will end. For existing customers this will end on their LHA anniversary date following the 1st April 2011 .This means you will not be able to get more money from Housing Benefit than the amount you pay in rent and may mean you will no longer qualify for help
• Caps will be introduced so that the weekly Local Housing Allowance rates do not exceed the maximum figures shown below. The maximum weekly figures are
• £250 for a one-bedroom property
• £290 for a two-bedroom property
• £340 for a three-bedroom property
• £400 for a four bedroom property
• The five-bedroom Local Housing Allowance rate will end, so the maximum rate will be for a four-bedroom property.
• Disabled customers will receive an enhanced amount of Housing Benefit that will take into account the cost of an additional bedroom, provided they rent a property that has an extra bedroom for their carer (who stays overnight but who doesn't normally live with them).
• Some customers will be able to request that Housing Benefit payments are sent to their landlord where the amount of rent payable has been reduced to a level that is affordable to the tenant (usually at or around the Local Housing Allowance rate)
• The deductions where a customer has someone living with them who is a grown-up relative or friend will be increased

When will this affect me?

If you are making a new claim to Housing Benefit (Local Housing Allowance) or moving home, the changes will affect you from 1st April 2011.

If you are already claiming Housing Benefit, you will have more time before your rate changes.

As long as your circumstances don't change, your Local Housing Allowance rate will be protected for a period of time after April 2011. This protection will continue for up to nine months following your next Local Housing Allowance Anniversary however this protection does not cover any excess payment you receive above your rental liability.

Example

If you made a claim in October 2010 and there have been no changes in circumstances then your LHA anniversary is 52 weeks after the date of claim, so in this case your claim would be reassessed in October 2011. From this date you would receive nine months at your current LHA rate before the new reduced rate is applied from June 2012.

What is a change in circumstances?

A change in circumstance is a

• Change of address
• A change in household resulting in fewer rooms required
• A change in household resulting in more rooms being required, however in this case the new rules will only apply if it is beneficial to the customer. If the new rules mean less benefit would be paid then you will continue to get your existing LHA rate for nine months.

Below is a table showing the January 2011 LHA rates being used and also the revised rates if the April legislation was in place now.

If you require any further information then please contact the Housing Benefit Department

Phone: 01283 508422

Email: benefits@eaststaffsbc.gov.uk  

or visit the Customer Service Centres in either Burton or Uttoxeter