Question about LHA rates?

red_devil

I was told that lha rates wouldnt go up this year even if the rent did. SO you would be paying more of your own rent and couldnt apply for an increase.

Does anyone know if this is right? If rents rise dont LHA rates?

Jowo_2

The UK bill for LHA has virtually doubled over the last decade and is heading north of £20 billion per year. LHA rates will remain static or decrease, depending on various factors.

The govt is introducing numerous changes which will depress LHA rates. For example, they are introducing a cap on LHA rates by number of bedrooms, extending the shared property rate for the under 25s to those aged up to 35, taking away the £15 that a tenant could retain if their LHA is less than the rent charged, changing the way that LHA rates are calculated (basing it on the bottom third of local rents, not the average). Also, for those on JSA for 1 year or longer, their LHA will decrease by 10%.

The big changes (introduction of caps and move from 50th to 30th percentile to calculate LHA rates) are shown below.

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

So, no, a claimant can't assume that their LHA will increase if their rent does and all the signs are that many LHA claimants will have to start contributing towards their rent out of their other income for the first time, or increase the sum they already pay.

Local councils will be given more money for tenants in need, so may have a larger fund for discretionary housing benefit.

fluffymovie

Just to add that the LHA rate for your claim is applied for a year. At the anniversary, your claim is amended to use the appropriate LHA rate in place in the month if your anniversary.

If your rent increases or even decreases, it doesn't affect the LHA that is used

mrsspendalot

Jowo wrote: »

The big changes (introduction of caps and move from 50th to 30th percentile to calculate LHA rates) are shown below.

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

That is really helpful! Just checked my LHA rate out and it will drop by £11 a week

HappyMJ

mrsspendalot wrote: »

That is really helpful! Just checked my LHA rate out and it will drop by £11 a week

You might want to check this link http://www.voa.gov.uk/LHADirect/Documents/LHA_percentile_rates_Feb_2011.html Jowo's link was for June 2010 this link is from somewhere else on the LHA website for Feb 2011.

On the June 2010 page I would lose £4.60 and on Feb 2011 it's up to £4.61. Not a big difference but worth checking.

mrsspendalot

HappyMJ wrote: »

You might want to check this link http://www.voa.gov.uk/LHADirect/Documents/LHA_percentile_rates_Feb_2011.html Jowo's link was for June 2010 this link is from somewhere else on the LHA website for Feb 2011.

On the June 2010 page I would lose £4.60 and on Feb 2011 it's up to £4.61. Not a big difference but worth checking.

Still around £11 difference for my area

Alleycat

£32 per week difference in my area, eek! Luckily our rent still falls below the max for the shadow 30th percentile so we will be okay. Am due back from mat leave at the beginning of April, just in time to start seeing how all these changes will effect my clients (work in housing advice). That is assuming I am not the one in my team to be made redundant!

RazWaz

Not looking forward to this change, I already had to make up £10 from my JSA (and I'm on the under 25 rate) now it looks like I'm going to have to make up £20 extra from it now. When is it going to happen? I want to start saving up a little extra to make it easier.

red_devil

you might be able to apply for help with payments from the council to meet the extra cost.