The new LHA rule for under 35's that only allows them to claim the rate for one room

Raphael

I originally posted this in the spending cuts thread but didn't get much of a reply, and was advsied to start a seperate thread.

"I've just had a quick read through all the previous posts, and trying to understand how things will work out with the new rule about under 35's only receiving LHA amount for a room in a shared flat. Some posters mention that we don't know as yet how it will be implemented, but other posters mention that it's from April 2012 and that it will happen on your claim anniversary / review date, how did you find that out, and does anyone have a link with more official info?

Unless they only apply the new rules to new claims, I can't see how it could possibly work out... What's gonna happen to all the people under 35 who already live in a one bedroom flat and receive LHA? Most of them won't be able to pay the difference out of their own pocket (where I live for instance the difference is currently £175 per month, and if you're receiving HB in the first place then you shouldn't have a spare £175 every month), so what's gonna happen, do they expect them all to move? And where are they supposed to move to, there's only a limited number of rooms in shared flats that are available to people who are not students!

If I try and see the positive side, maybe it means lots of 1 bedroom flats will now sit empty for longer and landlords might have to lower their prices, as it is ridiculous to be asked £475 - £500 for a 1-bedroom flat when 2-bedroom flats in the same area go for £550 - £600

I'm really keen on finding out more as just before this was announced I'd been looking at moving to a more expensive place because despite being incredibly cheap the one I currently live in comes with a lot of problems which kind of offset the difference, and I thought LHA would cover the higher rent anyway, I was hoping to move by next spring or earlier if I happened to find the right place before that but I'm glad now that I haven't moved yet cos I wouldn't want to be forced to move again once the new rule comes in! (at the moment I receive £145 a month, and this will drop to £80 a month when the £15 surplus is no longer allowed, and I can afford losing that, but not paying an extra £150 or so on top).

Now if the anniversary thing is true, I was thinking I could maybe still move and with a bit of careful planning it might not affect me too much. I will turn 35 in early April 2013, so if I was to take a new flat say late March 2011, the next anniversary date would be March 2012 so still before the new rule comes in, and the following one would be in March 2013, by which point I'd only be a few weeks / days away from turning 35.

But that's assuming it is treated as a new claim if you move to a new flat, rather than just an update to your current claim with the details for the new address... If it's still the same claim my anniversary date currently is in February so I guess I could probably still cover the difference until early April, even if that means having to get extra work to pay for it, so long as it's only for a couple of months, but there's no way I could go back to working insane hours to cover the difference for a whole year!

Also, because I'm self-employed and my income fluctuates, I get a review every 6 months, would that mean the new rule could be applied at that review rather than the anniversary of the claim?

What a headache, hope someone can help with more information!

Kimitatsu

No date has yet been set so to be honest I wouldnt worry about something which MAY happen in 18 months or may happen in 5 years time.

Concentrate on your business and where possible try to put some savings aside just in case.

Details here:
http://england.shelter.org.uk/get_advice/will_you_be_affected_by_the_spending_review

Raphael

Kimitatsu wrote: »

No date has yet been set so to be honest I wouldnt worry about something which MAY happen in 18 months or may happen in 5 years time.

Concentrate on your business and where possible try to put some savings aside just in case.

Details here:
http://england.shelter.org.uk/get_advice/will_you_be_affected_by_the_spending_review

Thanks unfortunately I cannot put savings aside and I have to think ahead even though it's still far away. I've been bankrupt since April and agreed to pay an IPA for 3 years, which is the equivalent of what I earn after my basic needs are paid for, and I have to tell the company that's dealing with it if I earn more money, and if I do they'll request a higher payment, which means I'm not given a chance to save anything!

I can't take a flat that costs a lot more per month if it then means I can't afford the rent payments for a whole year! I was technically homeless for 3 months before I got the flat I'm currently in, I found it on gumtree and I was just desperate for somewhere to stay so I took it on the day, even though it had a lot of flaws, and a very dodgy landlady.

More than 4 years down the line I would like to move if I find the right place, I can just about pay the average deposit and first month's rent in advance if needed, but there's no way I can pay 6-months' rent in advance as is required from people who don't pass the credit checks.

That also mean I can't go through an agency (who will run credit checks) so that makes things even more difficult. There's always gumtree but you have to be realy careful. So I'm basically stuck in this flat, with all its flaws, for another 2 and half years1

popxcore

http://www.direct.gov.uk/en/Nl1/Newsroom/DG_192415

government website says this change is being implemented from april 2012

and i guess they just expect people who will be affected by this to move to shared accommodation/move in with friends or family

and i guess the rest are expected to starve or become homeless

Raphael

Thanks for the link, I guess I'll just stay put then until I turn 35, the rent for another place in my area would be between £125 and £175 more than what I currently pay every month, and even though it's worth it for a property that's being looked after and more energy-efficient than the one I'm in I can't afford to make up the difference myself.

Examples of how bad my flat is: took me over 6 months to get a plumber to fix the kitchen sink, and only after I got the local rights office involved, and in all that time I basically had to avoid using it, I have one electric bar heater provided for the whole flat, so I've had to get extra electric heaters myself and it also costs a fortune in the winter, there's no gas safety certificate, there was just a big hole in the front door where the letterbox should have been, so I've had to fix that myself, the windows are really drafty too, the "kitchen" (where the fridge and cooker are) is carpeted so every time something drops to the floor it's a nightmare to clean (who the hell puts carpet in a kitchen?! maybe they were just hoping for short-term tenants who would bring a microwave in and get ready meals all the time, not someone who likes to cook from scratch as often as possible!), I only have a yale key to get in which means it's easier for anyone to break in (I'm lucky I have lovely neighbours who would hopefully phone me if they noticed anything suspicious), I've had repeated leaks from upstairs, doing damage to the walls and ceiling but the landlady doesn't seem to care.

I can afford losing the extra £15 a month, that just means my IPA will be lowered, but there's no way I could afford paying an extra £125-£175 a month after that!

I really do wonder what's gonna happen to people who already rent a one-bedroom flat! As you said the ones who can find shared accommodation will just have to move, and the others will just have to starve or become homeless.

Oldernotwiser

popxcore wrote: »

http://www.direct.gov.uk/en/Nl1/Newsroom/DG_192415

government website says this change is being implemented from april 2012

and i guess they just expect people who will be affected by this to move to shared accommodation/move in with friends or family

and i guess the rest are expected to starve or become homeless

Why would anyone need to become homeless or starve when they can simply share a house or flat?

GlasweJen

I'd guess that as parents with children who leave home receive less as they no longer are deemed to require that childs bedroom, people between the ages of 25 and 35 will be expected to find the difference or move to cheaper accommodation. Don't you have any single friends who you could flatshare with?

popxcore

Oldernotwiser wrote: »

Why would anyone need to become homeless or starve when they can simply share a house or flat?

I was just saying some people may not have either of those options

GlasweJen

there are websites for people looking to house share, googling house share and your area will kick up the relevant ones. Not all house sharers are students and there are sites soley for professional people.

Oldernotwiser

popxcore wrote: »

I was just saying some people may not have either of those options

I don't understand how anybody couldn't have this option; what circumstances are you thinking about?

stresshead81_2

The new LHA rules about under 35s will only be applicable to those applying for assistance after the date mentioned. I have just, following homelessness (sleeping rough etc), been housed in permanent accommodation. Admittedly, I am actually disabled and I do not come under the new rules if I was in that situation. If you are at all concerned about the state of your accommodation you must speak with CAB or a local housing advice centre. Just because you have had money problems it should not mean that you suffer in current cruddy housing. If you need to talk in more depth then please get in touch with me. I know a lot about housing and know people who may be able to help.