LHA levels if your rent includes bills?????

supersaverkerry

Hi

This is my first post here and I was wondering if some could help?

I live in a council property, but I am not the actual tenant it was given to, I moved in here with my boyfriend. We have split up and I need to find a new place.

I have looked into the help available as I am on dla and ib and see it is now lha that is paid instead on hb.

basically because I am only 23 I can only get shared accomodation, that is fine but most shared accomodation includes the bills so how do the lha people work it all out?

For example I am looking at somewhere that is 285pcm and my lha allowance is £56 per week, how much of that £285 would actually be awarded?

Thank you in advance for any help.

kerry

PhlangePhace

supersaverkerry wrote: »

....... I am looking at somewhere that is 285pcm and my lha allowance is £56 per week, how much of that £285 would actually be awarded?
....

It doesn't matter how much of the gross rent of £285 pcm is for 'services/bills' as far as LHA is concerned......the 'services/bills' element of that gross rent would only be of significance when a 13wk or 52wk protection is applied.

(For what it's worth, protection would not appear to apply in your case so this is irelevant).

£285 pcm gross rent = £65.77 pw so you'd be limited to the LHA rate that applies to you of £56 pw when calculating your entitlement.

Freebie_Hunter_2

Are you limited to shared accomodation or has someone given you advice to say this? You should get LHA for a studio flat or 1 bedroom flat at least, I would check with the citizens advice bureau.

Your rent is worked out according to your individual circumstances, so it's not a set amount for everyone. They will take into consideration that your bills are included so they will deduct some money from your award as they will only pay your rent. They work this out according to 'their' utility allowance, unless you can prove how much goes towards the bills from the rent.

astonsmummy

Freebie_Hunter wrote: »

Are you limited to shared accomodation or has someone given you advice to say this? You should get LHA for a studio flat or 1 bedroom flat at least, I would check with the citizens advice bureau.

Your rent is worked out according to your individual circumstances, so it's not a set amount for everyone. They will take into consideration that your bills are included so they will deduct some money from your award as they will only pay your rent. They work this out according to 'their' utility allowance, unless you can prove how much goes towards the bills from the rent.

Unfortunately for the OP If you are aged under 25, are single and childless, you can only get the Local Housing Allowance shared room rate.
Unless they are severly disabled or a care leaver, then different rules may apply.

alexiawest

Tha landlord I live with at the moment charges me £270pcm when we filled out the benefit forms she agreed to do me a tenancy agreement saying I pay £250 pcm exc bills, although I dont know if you are actually meant to do it like that? But on the form it gave spaces for a breakdown of other bills and she said she couldnt work all that out so prefered to do it as stated.

Im going to be in a similar situation to you kerry as I now have to move and I am also looking at places which are all inclusive.

It seems that the advice given here by phlangephace and freebie_hunter differs a bit?

How do you find out what the utility allowance is for your council? Surely it should be available somewhere as it would impact a person on deciding where they can afford to move into?

PhlangePhace

alexiawest wrote: »

Tha landlord I live with at the moment charges me £270pcm when we filled out the benefit forms she agreed to do me a tenancy agreement saying I pay £250 pcm exc bills, although I dont know if you are actually meant to do it like that? But on the form it gave spaces for a breakdown of other bills and she said she couldnt work all that out so prefered to do it as stated.

Im going to be in a similar situation to you kerry as I now have to move and I am also looking at places which are all inclusive.

It seems that the advice given here by phlangephace and freebie_hunter differs a bit?

OK, let me give you an example...

Lets say Mr Smith (over 25yo) has a 1 bedroom rate of £100 pw, in his area.
He has a tenancy with rent of £65 pw excl. (with an unwritten agreement that bills are £10pw)

His LHA would be based on £65 (gross rent) + £15 topup allowance = £80pw (under the LHA room rate applicable to him).

However, his mate, Mr Jones also has a flat in the same block and his tenancy agreement states £75pw incl. of services of £10.

His LHA would be based on £75 (his gross rent) + £15 topup allowance = £90pw (under the LHA room rate applicable to him)

Essentially, the GROSS rent is taken into account when assessing LHA, regardless of whether the service charges are ineligible or not.
It's only when applying protection that the service charge may need to be split between eligible and ineligible.

fluffymovie

Service charges were taken into account under the old HB system.

For example, if we had a claim from someone paying £90 per week for a bedsit, we would deduct £9.00 in respect of services.

However, now with LHA, you get the same amount no matter whether you pay services or not.

You get the LHA for accomodation you are entitled to, and as has been said, as you are 23, you would only get the shared room rate. Perhaps you could look to move in with someone like a friend as a joint tenant.

Although you would still only get the shared room rate as you share kitchen, bathroom etc, it would be yours and the rent between you is likely to work out about the same?!?!?