an argument that needs settled

moc247

hi there i was hoping someone out there could settle an argument
there is a 22 yrs old who has just a a baby she has got a house with a private dodgy lanlord she gets income suport the property is a three bed and its only her and they baby i told her that she wounld get all her rent pais by housing benifit that they would not pay for her to have a three bed house to her self is this true will she get it paid

moc247:j

Jowo_2

She will be eligible for a 2 bedroom property under the LHA calculations but she is free to rent any property of any size and make up the difference from her own benefits IF it is dearer than the LHA she is eligible for.

The LHA Direct website will help you identify what the rate is. It's up to her whether she chooses to find a cheaper property (and she gets to keep up to the first £15 difference if the LHA is greater than the rent) or whether she chooses a dearer property (and tops it up).

So what is the weekly LHA she is eligible to receive for that property in that area because of her household size and how much rent does she pay?

The current govt aims to reduce the LHA bill which is approaching 21 billion pounds and there are plans for the calculations that underpin LHA rates to change which could impact her in future. Currently, LHA rates are set at the 50th percentile so are based on the average median local rents but it will be changed to the 30th percentile, meaning that in future the LHA rates will be based on the lowest third of local market rents. I'm not sure how this will work in practice but there might be some info on the LHA direct website or on the local council website.

[Deleted User]

I dont think they get to keep the first £15 of any (lower)difference now,that rule changed in april 2010

Benefits_Bod

woodbine wrote: »

I dont think they get to keep the first £15 of any (lower)difference now,that rule changed in april 2010

The £15 top-up still exists. It's expected to go from April 2011, although the legislation hasn't yet been introduced.

Jowo_2

woodbine wrote: »

I dont think they get to keep the first £15 of any (lower)difference now,that rule changed in april 2010

From memory, it was supposed to have been phased out in the past but got some kind of reprieve.

Definately the trend of this govt is to reduce the LHA bill so I doubt the incentive will last for long.

I still don't understand though, how the change from 50th to 30th percentile of local rents to calculate the LHA rates will affect those currently receiving it, it it will apply restrospectively or just for new claims going forward.

Benefits_Bod

Jowo wrote: »

I still don't understand though, how the change from 50th to 30th percentile of local rents to calculate the LHA rates will affect those currently receiving it, it it will apply restrospectively or just for new claims going forward.

It's still up in the air - no firm legislation. Currently favourite is to apply the new rates from the anniversary dates / change of address / change of occupiers.

It wouldn't be too surprising, to me at least, if there was a bit of movement on the 30% figure to 35 or 40. It's difficult to tell - it's not unknown for figures to be bandied about just to test the water. But, that's all speculation on my part.

moc247

it just annoys me as she thinks she will have this really big three bed house fully paid for and will not need to pay anytop ups when i know people crammed in two beds with four kids and who do pay the top up.
does it depend on the rent ammount to what they will pay or will it depend ie that she only requires a two bed so they calculate it from that factor?
thanx for your info really helpful
moc247

CIS

The LHA rate would be based on her needs , as assesed , by legislation. If she is entitled only to a two bedroom house then she can rent a mansion if she wishes but she'll only get LHA at a maxium of the 2 bedroom LHA rate for the area.

Jowo_2

The LHA she receives is based solely on the number of bedrooms she is entitled to have, plus the area in which the property is in. Some tenants do manage to find larger properties for the same or less than their entitlement. The following website will help you understand how this is calculated. You can check there how much she is likely to get in LHA.

https://lha-direct.voa.gov.uk/Secure/Default.aspx

Jowo_2

moc247 wrote: »

i... i know people crammed in two beds with four kids and who do pay the top up.

There is usually a quality/size trade-off - larger properties can be cheaper in grottier areas, better standard property in expensive areas may only be affordable to those on benefits if they choose the smaller properties there.

Also, it depends on the age and sex of the children as to the number of bedrooms they are entitled to have.

moc247

thank you so much well he is only entitled to a two bed her and the baby but its in a beautiful well sought after area and thats why i said through a dodgy lanlord as you dont get houses like this on lha lol!
thans for all your help i really appriciate it
moc247