benefit changes/cuts in April 2011

Yasha

hi everyone,
Just wondering how things are changing in april 2011?
i am married and we are both claiming jsa as a couple at the moment. we have one 10 yr old boy and a baby girl due in january 2011.
we claim HB (we will be entitled to a three bed LHA once shes born), CTC, Child Benefit and council tax benefit.
hopefully our situation will be different in april 2011 but just in case...im wondering if any of what we claim will go down..especially concerned about the housing benefit as i heard they are cutting this drastically...and we're going to be moving as soon as the baby is born to a three bed to accommodate her!
thanks

bestpud

I believe there will be a cap put on LHA from April next year - £340 for a 3 bed from memory.

Then later on (october 2011) they will be lowering the LHA rates so they will reflect the rental value if the cheapest properties in an area.

Eventually LHA will be reduced by 10% for people who have been claiming JSA for over a year.

Hth

Jowo_2

http://www.voa.gov.uk/lhadirect/lha-emergency-budget-news-2010.htm

Figures are indicative but what's the LHA rate you will be due for a 3 bedroom property in your area and what's the going rate for rent on a 3 bedroom property for landlords that accept benefit claimants?

Are they broadly similar?

Jowo_2

bestpud wrote: »

I believe there will be a cap put on LHA from April next year - £340 for a 3 bed from memory.

Then later on (october 2011) they will be lowering the LHA rates so they will reflect the rental value if the cheapest properties in an area.

Eventually LHA will be reduced by 10% for people who have been claiming JSA for over a year.

Hth

Good summary

The mention of lowering of LHA rates to the cheapest properties in the area is because the broad rental market rates will be set at the 30th percentile, rather than the 50th. This means that it will be based on the cheapest third of local market rent rates rather than the middle or average which it is based now. So that's quite a downward pressure.