Local Housing Allowance "all bills included"

matt2222

I am looking for larger accommodation to begin fostering again due to an urgent demand for foster parents.
However no extra payment is allowed with LHA for foster children but I have
looked at a few flats with "all bills included"
Does anyone here know if deductions are made from LHA if bills are included
as opposed to making a specific payment for heating etc
I have looked at HB REgs and also spoken to several advice agencies without getting a definitive answer.Many thanks for any help.

Snakeeyes21

Yes they will make deductions.
I'm not sure how they do it but I would imagine they contact your landlord and ask what proportion of the rent goes towards the various bills, they then deduct this amount from what you are able to claim.

fluffymovie

Sorry to disagree but we don't deduct amounts for services under Local Housing Allowance.

The LHA rates are different depening on what Broad Rental Market Area your property falls into but the LHA rates take into account the rents for accomodation in your area.

Under the old rules, we used to make deductions for fuel and water etc and the Rent Officer would value them and tell us what rent to use. For example, a rent of £90 per week for a bedsit, we would deduct £9.50 for services meaning that the maximum HB we could pay would be £81.50. Under LHA, the rent levels take into account any services and so we don't deduct again.

However, there may be an issue if Ctax is included as you would be considered the liable party and could be entitled to Council tax benefit but if your landlord pays it, you would be paying the full amount in your rent.

matt2222

Thanks for replies.Still confused though
The form sent to apply for LHA is still the old HCTB1 which asks via part 12
page 24 "Does your rent include money for the following?"ie heat electric etc
and asks for the amount paid.Also all housing benefit sites quotes deductions for services.

ie Actual amount OR fixed deductions

More than one room
All fuel £28.30
Heating £21.55
Hot water £2.50
Lighting £1.75
Cooking £2.50

One room only
Heating, or heating & hot water, or heating & lighting, or heating & hot water & lighting (subject to challenge) £12.90

I can find no information that no deductions will made from LHA with "all bills included."

I had to go to court once before because I was given the wrong
information which was no excuse as "it was my responsibility to
get the right information".All professionals,officials do not seem
to be accountable for the advice they give.This is also
true of Solicitors and Accountants.Try taking them Court!!

I would not expect my heating etc to be paid if I was billed for it separately
but if it is included in my rent which is well within my Local Housing
Allowance again it seems unfair when the fixed deductions are much
higher than I would ever spend ie

£21.55 for heating seems high in the Winter let alone in the Summer
when it isn't used

KimYeovil

Both sides of this are crazy!

£21.55 for a single person? Every week all year round? £1123 for heating alone? £223 more than the national average for everything? That's crazy* and can't be right.*

Alternatively, if you arrange with your landlord to pay it bundled you don't need to pay a penny from your JSA to cover your bills if you are on LHA? Just as crazy.

*Yes, I know, in this sector that is not a necessary conclusion

fluffymovie

The HCTB1 is an old form but remember that LHA doesn't apply to all tenancies. Housing Associations for example.

People who were on HB prior to LHA on 7 April 2008, are still considered under the old rules and so deductions are made from their rent on the basis of services. However, the rent that the Rent Officer comes back with is normally the same as the LHA rate in force meaning that the dedcuctions were made from the Claim Related Rent.

The Local Housing Allowance regs are meant to simplify HB and so we don't make deductions from LHA for heating.

If it is any help, our software which is used in a large number of councils nationwide (Northgate I world) wouldn't even let us take a deduction if we input the amount anyway

However, please contact your local authority as I am sure they will be able to assist you.

matt2222

"Just as crazy." I think not when LHA rates are low in most parts of the country
and most people can't use it as most Landlords (unless they are renting out sub-standard housing) say "NO DSS"
Try telling them you foster as well and see the look on their faces!!

Also trying to find 4/6 weeks deposit and 4 weeks rent in advance
can be prohibitive!

"All bills included" is also not common - Landlords rarely give anything away
if they don't have to.

Can't believe how quickly Google snaps up these threads!!

matt2222

Thanks again fluffymovie for your advice
and to everyone who helps on this forum
It really is a wonderful resource.