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Anyone come across this yet? HB on to LHA rates

Just had a person I help on the phone, she's got a letter from HB this morning

Basically goes along the lines of, we have changed your HB and the rent officer believes the rent is too high we have changed it to **** which is the LHA rate for her. She was told she would stay on HB but what is the point if they are changing the rates to LHA rates. She was previously paying a rent top up of £28 now she has £79 to pay, the HB is now half her rent.

Anyone come across this so far and if so what was done? She made the decision to move in based on the rent officers decision for how much HB she would get, not thinking they'd lower it.

She can't phone until Monday so thought I'd ask here first to see if anyones dealt with this on a personal or professional level.
One day I might be more organised...........:confused:
GC: £200
Slinkies target 2018 - another 70lb off (half way to what the NHS says) so far 25lb

Comments

  • Our local authority operates on this new scheme- Basically they award you a rebate based on how many people your family consists of and how many rooms they feel you need. So everyone with the exact same family structure as you receives the same money. We are a couple with a small baby and the council states all family's with this make-up are entitled to £85 (not sure on the exact figure but it is something like this) a week rent rebate. So as you can appreciate a house for our family at £340 a month is non-existant so we have to top-up our rent substantially! As always when councils change these things they don't seem to benefit us...... just the councils budget.
    Check out your local councils website, they should give a breakdown of what your entitlements are.
    What goes around... comes around...
  • I'd call the authority on monday to check they have the calculations correct as in our area LHA is generally higher than the equivelant HB rates. Unfortunately if it is correct I don't believe that you can appeal against the LHA rate.
  • lil_me
    lil_me Posts: 13,186 Forumite
    10,000 Posts Combo Breaker
    In the ladies area, because the BRMA is larger the LHA is lower, much lower, than the HB she was entitled to.

    She's a HB claimant been put onto LHA rates, after being told when she applied for the tenancy (and applying for pre tenancy calc) that this wouldn't happen.

    I guess this is also a be aware then, for those on HB who's LHA rates would be lower that you could be put onto those rates without being changed to LHA
    One day I might be more organised...........:confused:
    GC: £200
    Slinkies target 2018 - another 70lb off (half way to what the NHS says) so far 25lb
  • Chrysalis
    Chrysalis Posts: 4,793 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Not had anything like this happen, but LHA rates in my area are higher than what I get on HB.

    My council has finally got round to doing BACS payments tho, got a letter last week asking for bank details so finally can stop using cheques.
  • dag_2
    dag_2 Posts: 793 Forumite
    Yeah, I've never known LHA rates to be lower than housing benefit. I live in London, and whenever I've moved into rented accommodation (before I had my inheritance by the way) I've never bothered to get pre-tenancy determinations; you really can't afford to let on that you might be a benefit claimant when looking for accommodation in London, because if you do, then lettings agencies will invariably say "NO" - and you say "not even with a bigger deposit?" and then they say "well okay then, but no less than six months' rent up front. And it's got to be a bank draft; we can't take cash for that amount due to anti-money-laundering policies."

    No, what you've got to do is stay tight-lipped about it, but just claim benefits anyway, and just take your tenancy agreement down to the LA office as proof of tenancy once you've got the keys.

    However, whenever I've done this, my "eligible rent" has always been my full rent, and I've never had to make up any extra.

    I'm still in the same rented accommodation that I moved into before LHA came in, but my LHA rate is still significantly higher than my actual rent.
    Basically goes along the lines of, we have changed your HB and the rent officer believes the rent is too high we have changed it to **** which is the LHA rate for her.

    I thought that people weren't supposed to lose out as a result of the transition from housing benefit to local housing allowance?

    Theoretically, though, I suppose the rent service could have dropped the eligible rent at any stage. I suppose it could be argued that the fact that the new eligible rent figure is the same as the LHA rate is a coincidence.

    Isn't there any kind of appeal process for rent levels?

    If the tenant moved into this particular accommodation before 1989, then I believe you can apply to The Rent Service to get the reduced HB figure registered as a "Fair Rent". The landlord won't usually be allowed to charge more than that.

    However, part of the point of the new LHA scheme is that tenants on benefits don't stay in accommodation where the rent is over the odds. It's supposed to be "empowering" for tenants to be able to shop around and haggle for cheaper rented accommodation.

    The tenant could also try claiming a discretionary housing payment. I'd have thought your chances would be better if you really can't get anywhere cheaper in the area, or if the tenant has some kind of special needs or vulnerability which means that they can't realistically up sticks and move.

    Sorry that hasn't been much help.
    :p
  • lil_me
    lil_me Posts: 13,186 Forumite
    10,000 Posts Combo Breaker
    The way they seem to be getting away with it is they are keeping her on HB just saying that the amount is the rent officers decision for how much they can get towards the rent.

    They are higher or lower depending on which part of the area you live in this county, central city HB rates were higher than outskirts when it came to HB but the LHA covers a broader area. She has 2 girls, was entitled to 4 rooms under HB but 2 bedrooms under LHA. She's currently considering moving to Sunderland as LHA is £15 per week more for a 2 bedroom but housing is cheaper, which makes no sense at all!
    One day I might be more organised...........:confused:
    GC: £200
    Slinkies target 2018 - another 70lb off (half way to what the NHS says) so far 25lb
  • Just a small technicallity, I have a client who would really benefit from claiming LHA as the top rent would be much less, however the local council have told me you have to cancel your claim for hb and then submit a new claim for LHA. This mean the person is then liable for a weeks rent which is difficult for some people to afford. My point is how can the council change it over to LHA instantly just because it benefits them?
  • Chrysalis
    Chrysalis Posts: 4,793 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    dag indeed I did the same, the pre-tenancy determination needs the landlords consent so is a big no go, I do as you said, just make sure you pay and keep the benefit under wraps.
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