Housing Benefit.. the new cuts and disabled ?

ChocolateLover_3

Hello everyone,
I hope I can get an answer to my question, and apologies if this has been asked before but have been unable to find it here ..
My question is this, if you are on higher rate DLA and Middle Care benefits, renting privately since Oct 2008 will the new housing capping scheme mean rents will be cut? I have seen on some sites that this will not affect the disabled, and yet my council authority says this new rule applies to all, anyone know for sure please ? This is getting me down not knowing if I will have to move or not, I know that I will be able to stay til next Oct as this would be when my yearly review takes place.
Chocci

Lou76

Chocci, I'm not clued up on the HB cuts (I live in Scotland, no idea if this is Nationwide, and have a mortgage, so it doesn't affect me, so I haven't researched it ).

But, from the little I understood, on the BBC report I watched, the rules only apply to newer LHA recipients, not 'old' HB recipients.

No idea when LHA replaced HB (never having any dealings with either of them), or if this would affect you, but hopefully you'll be ok.

If the worst came to the worst, could you "top up" your rent to allow you to stay where you are? From what I can gather, as a single person in a [possibly?] 1 bed flat/house the difference should [hopefully] be manageable?

Sorry I can't be of any real help, couldn't read and not reply.

Jowo_2

As far as I know, the introduction of LHA caps (an upper limit) and the move from the 50th to the 30th percentile of local market rents (i.e. move from median to lowest third) when calculating rates, affects all claimants and none are exempt. A disability/welfare advice organisation, such as DIAL or Citizens Advice should be able to confirm.

The potential (indicative) affect of this is shown on the following link at the LHA direct website. I understand that the govt is giving local councils much higher money for discretionary housing benefit to help the most vulnerable.

From April 2011 a new upper limit will be introduced for each property size, with upper limits set at:

• £250 a week for a 1 bedroom property
• £290 a week for a 2 bedroom property
• £340 a week for a 3 bedroom property
• £400 a week for a 4 bedroom property or larger.

The planned change from median to 30th percentile will not be introduced before October 2011. LHA rates are likely to change in the interim period.

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

That emergency budget also proposed that disabled people needing a live in carer were eligible for an extra bedroom but I don't know the specific details

http://www.disabilitynow.org.uk/latest-news2/budget-opens-door-to-extra-room-for-carers

Peter1079

I think the Op is mixing up three statments from government here:

Firstly there is the 'Benefit Cap' as mentioned above, which as the op receives DLA, it will not apply to him/her.

Secondly there is the cut of LHA from the median rent to the 30th Percentile. How this affects the OP, if he/she is privately renting, is quite complex. It depends on his/her current rent, what the local area broad market rental is currently and what it will be under the 30th percentile rule.

Thirdly if the OP's rent is currently £15.00 per week or less than the median broad market rental rate in his/her area then the OP currently keeps the difference upto the £15 ceiling. Again this is being stopped.

He really needs to seek specific advice from such as the shelter national helpline 0808 800 4444.

PipsoG

I'd love to find a rental property that cost £15.00 or less per week! Where are they?

Tally-Ho_2

PipsoG wrote: »

I'd love to find a rental property that cost £15.00 or less per week! Where are they?

Although Peter1079 could have worded it better,

he refers to the fact that if a rental property ''costs £15.00 (or less) than the weekly median broad market rental rate''

then the tennant can keep the difference between actual rent and the broad market rental rate upto a maximum ceiling of £15.00 per week.

I too would love to find properties with rents of £15 per week, but even if someone did find one, they could only claim a maximum of £15 between the actual rent and the broad market rental rate per week.

That is of course until these £15 per week payments are abolished as has been announced by the government. So if one has been lucky enough to currently rent a property £15 per week cheaper than the local broad market, they stand to lose the £15 per week (equivalent to £60 every 4 weeks) which is quite a cut in benefit, particular if one is also affected by the move from the median to 30th percentile
which could well mean LHA payments will be reduced with the tennant paying more towards the cost of the rent.

Morglin

This gives information:

http://www.parliament.uk/briefingpapers/commons/lib/research/briefings/snsp-04887.pdf

Lin