Local Housing Allowance is being decreased - Now have to survive on £58 per week

stayinganonymous

Hi,

My mum left my dad after being together for 30+ years and moved into a privately rented home as she wasn't on the rent book in the council house they lived in. She only earns £144 per week and the rent is £500 per month. She's been living in the property for 11 months and Local Housing Allowance allowed her about £270 per month towards her rent (might be £1 something over, I don't have the exact figures) and she had to pay about £230 out of her wages per month.

Anyway, there was a problem with something so my mum rang her Local Housing Allowance office (who never seem to know what they are doing) and they said that that from next month they will only be paying her landlord £230 and that she would now have to pay £270 out of her wages rather than £230 per month. Her circumstances haven't changed, she still earns £144 per week. Her council tax will be about £18 per week rom what she said, so after all that she is going to be left with about £58 per week (after paying rent and council tax) to pay all other households bills... basically she's going to be about £10 worse off per week.

Now correct me if I am wrong, but I thought Local Housing Allowance basically took enough of your wages to leave you with what state benefit would pay you? (is it £66?). My mum could barely survive on the £68 per week (not exact) she was left with before and £10 less benefit per week is going to have a big effect on her. Especially when the Water, Gas and Electric want her payments to go up this month too.

She's now going to have to survive on £58 ish per week to live on(that's if her council tax is £18 per week, it could infact be more... she doesn't know yet - she's been paying £25 per week for the past 11 monts).

Does this sound right? I am aware Local Housing Allowance is changing, but would it really make you live on less than what state benefit (job seekers) would pay you? £7-£10 extra rent a week might not sound much, but to my mum it is... she simply hasn't got it after paying her bills.

pandaspot

the best thing your mum could do is apply for a discretionary housing payment. this will top up her housing benefit.

the only other option is to try to move to another cheaper property? but saying that her rent at £500 a month is reasonable anyway.

nannytone_2

a lot depends on the property she is living in. as a single person she would only be entitled to the 1 bedroom rate.
and in the budget it was stated that rates of LHA were going to be cut.
if she is only living in a 1 bed property now, i would suggest she look for a cheaper rental.

welshmoneylover

stayinganonymous wrote: »

Hi,

My mum left my dad after being together for 30+ years and moved into a privately rented home as she wasn't on the rent book in the council house they lived in. She only earns £144 per week and the rent is £500 per month. She's been living in the property for 11 months and Local Housing Allowance allowed her about £270 per month towards her rent (might be £1 something over, I don't have the exact figures) and she had to pay about £230 out of her wages per month.

Anyway, there was a problem with something so my mum rang her Local Housing Allowance office (who never seem to know what they are doing) and they said that that from next month they will only be paying her landlord £230 and that she would now have to pay £270 out of her wages rather than £230 per month. Her circumstances haven't changed, she still earns £144 per week. Her council tax will be about £18 per week rom what she said, so after all that she is going to be left with about £58 per week (after paying rent and council tax) to pay all other households bills... basically she's going to be about £10 worse off per week.

Now correct me if I am wrong, but I thought Local Housing Allowance basically took enough of your wages to leave you with what state benefit would pay you? (is it £66?). My mum could barely survive on the £68 per week (not exact) she was left with before and £10 less benefit per week is going to have a big effect on her. Especially when the Water, Gas and Electric want her payments to go up this month too.

She's now going to have to survive on £58 ish per week to live on(that's if her council tax is £18 per week, it could infact be more... she doesn't know yet - she's been paying £25 per week for the past 11 monts).

Does this sound right? I am aware Local Housing Allowance is changing, but would it really make you live on less than what state benefit (job seekers) would pay you? £7-£10 extra rent a week might not sound much, but to my mum it is... she simply hasn't got it after paying her bills.

Has she thought about getting a second job or moving to a cheaper property?

starchild1972

If she lives alone then her council tax would have a reduction surely? Otherwise the council tax benefit is staying as means tested.

Jowo_2

She can double check her full benefit entitlements on the Turn2us online benefit calculator. Perhaps she has an entitlement to tax credits or greater council tax discount than just the single person's 25% discount?

Could part of the problem be that she moved into a property way above the maximum LHA threshold for a single person and thus has left herself exposed to an even bigger top up than usual? You can check her maximum LHA rate on the LHA direct website to understand if she put herself at risk by moving into a property whose rent is far more expensive than the limit which has caused a big shortfall that way. You seem to think that the govt is obliged to leave her with x sum after her rent is paid but a person doesn't have an limitless budget for LHA. It's currently calculated by average local rents but will move to the bottom third (move from 50th to 30th percentile).

A person over the age of 21 can usually get around £200 or so per week after tax from a full time minimum wage job so her net income indicates to me that she is working part time. Is she able to find full time employment?

Breast_Cancer_Survivor

I'm presuming that she lives in a property with more bedrooms that she is entitled to which is why she has such a large shortfall.

Could she move to a smaller property or rent out one of the spare rooms perhaps?

This is happening to everyone unfortunately.

AnxiousMum

As there have been no changes in circumstances for your mother, I would assume that the 'change' taking place 'next month' would be the same change that is taking place for everybody?

Commencing in April, aren't the amounts being paid by LHA being reduced to a lower average rental for the area? This is happening all over the country, with maximum allowable rates being enforced, and the five bedroom rate done away with altogether.

Have LHA recipients been given no warning of this?

Breast_Cancer_Survivor

AnxiousMum wrote: »

As there have been no changes in circumstances for your mother, I would assume that the 'change' taking place 'next month' would be the same change that is taking place for everybody?

Commencing in April, aren't the amounts being paid by LHA being reduced to a lower average rental for the area? This is happening all over the country, with maximum allowable rates being enforced, and the five bedroom rate done away with altogether.

Have LHA recipients been given no warning of this?

I've had no warning or information from the council at all but luckily I knew it was happening because I come on here.

I guess it's been in the papers too but even so the council should of kept people informed.

stayinganonymous

pandaspot wrote: »

the best thing your mum could do is apply for a discretionary housing payment. this will top up her housing benefit.

the only other option is to try to move to another cheaper property? but saying that her rent at £500 a month is reasonable anyway.

I've never heard of discretionary housing payment, so will have to look into that for her.

To be honest, I'm not sure how moving into a cheaper property will help, they would just adjust the Local Housing Allowance they give her and she'll still be in the same position. Rent in Ipswich for a 1 bed flat is a good £415 per month.

nannytone wrote: »

a lot depends on the property she is living in. as a single person she would only be entitled to the 1 bedroom rate.
and in the budget it was stated that rates of LHA were going to be cut.
if she is only living in a 1 bed property now, i would suggest she look for a cheaper rental.

The cheapest 1 bed flat in Ipswich is about £415 per month, then it's a struggle to get landlords that take on tenants claiming Local Housing Allowance... it was hard enough for her to find this place.

welshmoneylover wrote: »

Has she thought about getting a second job or moving to a cheaper property?

With regards to finding another job, I'm not sure how this will help (unless she was able to earn £200 per week) as they will just re-adjust her Local Housing Allowance and she would still be left with the same amount per week.

starchild1972 wrote: »

If she lives alone then her council tax would have a reduction surely? Otherwise the council tax benefit is staying as means tested.

It does have a reduction, but I think she had to pay more because she hadn't started paying at the beginning of the council tax year (sorry, I don't know all the details) which made her weekly/monthly payments higher, that's why this year it should go down to £18 per week.

Jowo wrote: »

She can double check her full benefit entitlements on the Turn2us online benefit calculator. Perhaps she has an entitlement to tax credits or greater council tax discount than just the single person's 25% discount?

Could part of the problem be that she moved into a property way above the maximum LHA threshold for a single person and thus has left herself exposed to an even bigger top up than usual? You can check her maximum LHA rate on the LHA direct website to understand if she put herself at risk by moving into a property whose rent is far more expensive than the limit which has caused a big shortfall that way. You seem to think that the govt is obliged to leave her with x sum after her rent is paid but a person doesn't have an limitless budget for LHA. It's currently calculated by average local rents but will move to the bottom third (move from 50th to 30th percentile).

A person over the age of 21 can usually get around £200 or so per week after tax from a full time minimum wage job so her net income indicates to me that she is working part time. Is she able to find full time employment?

I don't think she works enough hours per week to be entitled to any credits. Yes she works part time, she's been working there for 8 years.

As you can probably guess, she's restricted because she would need to find work very local, within walking distance as she cannot afford a vehicle (can't drive anyway). She walks to work now, takes her an hour because she cannot afford the bus fare.

When she asked about Local Housing Allowance before moving out of the council house, she was told they would pay a maximum of about £400 per month. And for the past 11 months was allowed £270 towards her rent, but now only £230.

I was trying to say, if someone on JSA was in a privately rented property they would get to live on their £66 per week for food, electric, gas and water (unless that isn't true? I haven't a clue... that's why I am asking)... so I thought that because the government thinks that's what an adult over 25 can survive on then she would be left with that amount. I'm aware they will only allow so much, but she's within that range... I could understand if her rent was £600+.

I'm just trying to get my head around it for her as she's really worrying. She doesn't smoke, drink or drive she doesn't go out or have any hobbies... the money she's left with goes on normal bills that we all have to pay. She can't drive and wouldn't be able to afford to anyway.

If only we could all earn £300+ per week with no qualifcations eh?

TOBRUK

I have not yet received a letter regarding the reduction in mortgage interest payments which came into force last October! If I hadn't taken in the last budget and someone who keeps up to date in politics and news ... I wouldn't have known! So I wouldn't be surprised if people haven't been notified of the changes in housing benefit!!;)

I'm afraid there will be many posts like this in the near future! It will be very hard for some as there aren't enough social housing around for people to move to more affordable housing!