Changes to Local Housing Allowance April 2011
From the 1st April 2011 the Government are introducing significant changes to the Local Housing Allowance scheme. Any new claim for Housing Benefit made after this date will be assessed using the new rules.
If you are an existing Local Housing Allowance customer these changes may affect the amount of Housing Benefit you get.
The changes are explained in more detail below.
- EXCESS BENEFIT (MAXIMUM OF £15 PER WEEK)
Currently if the amount of rent you are charged is less than the Local Housing Allowance rate you are entitled to you are able to keep up to £15 of the difference to spend as you wish. From April 1st onwards the extra payment of £15 excess benefit on top of your rent is to be removed. If your rent is less than the Local Housing Allowance rate that applies to you the maximum amount of Housing Benefit you can possibly receive will be the amount of rent you are charged.
- REMOVAL OF THE 5 BEDROOM LOCAL HOUSING ALLOWANCE RATE
The Government has announced that from the 1st April 2011 the 5 bedroom Local Housing Allowance rate will no longer exist and the highest rate available to large households will be the 4 bedroom rate.
- THE LOCAL HOUSING ALLOWANCE RATES
The Local Housing Allowance rates are set monthly by the Valuation Office Agency. To set the rates they take into account the different levels of rent that are being charged for similar properties across the area. From the 1st of April 2011 onwards the way the rates are calculated by the Valuation Office Agency is changing slightly which will mean the rates are likely to be lower than those previously used.
Please use this link to view the current Local Housing Allowance Rates.
- EXTRA ROOM ALLOWED FOR AN OVERNIGHT CARER
With effect from the 1st of April 2011an extra bedroom will be allowed in the calculation of your Local Housing Allowance rate if you, or your partner, require overnight care that is provided by someone outside of the household. In order to qualify you must occupy a property with an additional bedroom that is used specifically for the purpose of overnight care. To award the extra bedroom we will look at whether a tenant gets Attendance Allowance or the care component of Disability Living Allowance. In some circumstances we may ask you to provide evidence that you receive overnight care.
- DIRECT PAYMENTS TO LANDLORD
The Local Housing Allowance changes due to take place in April 2011 will cause a reduction in Housing Benefit for many customers and the shortfall for many between the rent they are charged and the benefit they receive will increase. This could lead to an increase in rent arrears. To minimise this risk the Department for Work and Pensions are amending the guidelines regarding when benefit payments can be issued directly to the landlord.
We will be able to make payments direct to a landlord in cases where there is clear evidence a tenant’s rent has been actively reduced by their landlord to an affordable level. This aims to help minimise the risk of rent arrears whilst providing landlords with an incentive to reduce their rents to levels that are affordable to customers in receipt of Housing Benefit.
The monthly LHA rate applicable to each individual customer will be used by us to judge whether the new rent is both reasonable and affordable. If the new rent is deemed to be at a satisfactory level and a written agreement between the landlord and the tenant reflecting the new rent has been received by us, future payments of benefit can be issued directly to the landlord. Evidence will also be considered from the Homelessness Prevention Team, Housing Advice or the Citizens Advice Bureau.
IMPORTANT INFORMATION FOR EXISTING LOCAL HOUSING ALLOWANCE CUSTOMERS
If you move address after the 1st April 2011 the changes above could apply to you.
If you do not move address your Housing Benefit award may not be affected by any of the changes above until your next Local Housing Allowance rate review takes place. Your next rate review will happen at some point within the next 12 months. However if your household changes beforehand we will carry out a review of your Local Housing Allowance at the same time and you may be affected by some of the changes earlier.
In certain circumstances if you are going to be worse off when your case is reviewed the amount of benefit you have been receiving may be protected for up to 9 months. Please note there will be no protection available for payments of excess benefit this will be removed, if applicable, from your award. We will write to you to explain what your new award of Housing Benefit will be once your case has been reviewed.