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Local Housing Allowance (LHA) Rate Crash?
DearyMe22
Posts: 37 Forumite
Turns out in my area the allowance for a 1 bed flat has gone from 425 to 400 pounds in the space of one month :eek: - so i'm going to have to make up the extra 25pounds per month - goodness knows what happens next month luckily my tenancy is up by then!
Why the crash? How are the rates determined? Is anyone else being hit by this?
What are NuLabour playing at?
Why the crash? How are the rates determined? Is anyone else being hit by this?
What are NuLabour playing at?
0
Comments
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Has your LHA come up for review? I understood that normally your allowance is fixed for 12 months, unless a change in your personal circumstances triggers an earlier review.I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.0
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As far as I know the rate isn't fixed but generated by the local authority each month. 25pounds in one month is very steep!
If anyone else is on the scheme I'd advise checking the your local councils website for December and hopefully you won't get a shock like i did!0 -
As I understand it, once LHA has been awarded it is not reviewed each month otherwise it would be un-manageable having to review cases each month.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0
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From the Stoke-on-Trent website:
The rate of Local Housing Allowance applied to a claim will last for one year from your claim unless you have to move to a different Local Housing Allowance band . After one year it is updated to the current level set by the rent service.
It is correct that the Rent Service set the rate each month, and that rate will be shown on your LH website, but it will only apply to existing LHA claimants on the annual review when the rent is updated, or when a change in circumstances, eg an addition to the family or a move to a new place, triggers a review.I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.0 -
Ask for a rent reduction. Either that or you'll have to move.0
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zzzLazyDaisy wrote: »From the Stoke-on-Trent website:
The rate of Local Housing Allowance applied to a claim will last for one year from your claim unless you have to move to a different Local Housing Allowance band . After one year it is updated to the current level set by the rent service.
It is correct that the Rent Service set the rate each month, and that rate will be shown on your LH website, but it will only apply to existing LHA claimants on the annual review when the rent is updated, or when a change in circumstances, eg an addition to the family or a move to a new place, triggers a review.
I see. So you stay on the rate you was on when you claim was made unless change of circumstances? Makes sense I suppose and prevents shortfalls happening. Thanks.0 -
Logically, your entitlement can't change each month or you would have no way of budgetting. In the same way that a landlord has to give a tenant a months notice of a rent increase, the same must be true of LHA. Otherwise you would not be able to arrange to move if you couldn't afford the top up.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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