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

KxMx

Unlimited bus travel in Ipswich is £14.50 for a weekly ticket or can be cut to £12 a week if you buy the monthly pass at £48.
I appreciate this is a chunk out of your Mum's income now but if that opened the door to a better job + tax credits would be well worth it.
If she has online access then why not do a few free courses to brush up on skills.
Have you looked at her outgoings to make sure she is getting the best gas/electric rate, deals on food, single persosn'd council tax discount? Has she applied for help with health costs on a low income basis?

Jowo_2

stayinganonymous wrote: »

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.

.., 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....
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 could understand if her rent was £600+.

Of course if she moved into a cheaper property, it would help - why would it not?! Why do you think she would be worse off if she reduces her living expenses? Her maximum LHA allowance for a 1 bed in the local area does not change if her income changes - the maximum remains static, it is her income that determines how much of this she gets.

It's the huge top up expected because of the difference in her LHA entitlement and her rent that's is probably a major factor in her struggle to afford her household expenses. Why don't you run these two scenarios in the Turn2us online benefit calculator - one where she earns the same income but lives in a property £100 cheaper each month?

I have just checked the LHA direct website and it indicates that the maximum LHA for a self contained 1 bed in Ipswich is around £94 per week, so approx £410 per month. If that's the case, then if she ever lost her job, she'd have to fund the £22 per week shortfall out of her £65 JSA. Are you aware of that?

Some landlords are more amenable to a LHA claimant if they are working part time or if they can offer a guarantor so if you can be her guarantor that would help, but there are risks involved for you in doing that.

stayinganonymous wrote: »

I don't think she works enough hours per week to be entitled to any credits.

It's 30 hours per week for a single person.

nickthegreat

stayinganonymous wrote: »

I knew a reply like this would come along

My mum had 3 kids, brought them up while my dad worked. Once they were old enough to care for themself she got a job too, split up with my dad and had no rights to the house because she wasn't on the rent book. Had no money or savings to her name so applied for help with her rent. My mum WOULD get a better job if she could, she has no qualifications and has no CAR to get to work so is restricted to finding something local. Things are just too expensive now, trains, cars, bus fare... you really do need to earn quite a bit of money to pay out for rent, council tax, electric, water, gas and food.

you've got a reply like that because it's a fair comment

your mum has had the same part time job for 8 years. in that time there have very likely been opportunities for a full time position at her place of work, if not in the surrounding area. it isn't unusual for people to commute 45 minutes to work, I have friends that walk that far in london. unless she is physically unable to do this, i would expect that to give her the ability to get to most jobs in Ipswich. If not she is probably living in the wrong house.

i know things aren't always so clear cut, and it does sound like an unfortunate situation, but your mum isn't entitled to a certain standard of living. if she is struggling she should be in a house share, like i am, so that she can save and then use that money to help change her circumstances

AnxiousMum

nickthegreat wrote: »

you've got a reply like that because it's a fair comment

your mum has had the same part time job for 8 years. in that time there have very likely been opportunities for a full time position at her place of work, if not in the surrounding area. it isn't unusual for people to commute 45 minutes to work, I have friends that walk that far in london. unless she is physically unable to do this, i would expect that to give her the ability to get to most jobs in Ipswich. If not she is probably living in the wrong house.

i know things aren't always so clear cut, and it does sound like an unfortunate situation, but your mum isn't entitled to a certain standard of living. if she is struggling she should be in a house share, like i am, so that she can save and then use that money to help change her circumstances

However, this reply was put in a much more respectable manner - funny how it reads so differently to the other posters about how fantastic they are!

nickthegreat

AnxiousMum wrote: »

However, this reply was put in a much more respectable manner - funny how it reads so differently to the other posters about how fantastic they are!

i take it that's a good thing?

i make up for it with my name

RAS

In which case she needs to get her skates on and work the full 30 hours week, even if it is another job for a short while. That will sort out her WTC.

Jowo_2

If the benefits she is receiving are correct and she cannot increase her income, then all she can do is reduce her outgoings. MSE provides a budget planner on the free tools section - get should download it, fill it in and work through the site, including the forums, to identify how to live even more frugally than she does.

The OP is correct that the LHA rates aren't generous and that landlords are reluctant to rent to benefit claimants but I still think the major issue is that her rent is far in excess (around 20%) than the maximum rate of LHA and this is bound to remain static or decrease over time because of proposed changes to LHA. I accept that it is very hard for LHA claimants to secure good cheap housing. However, currently on Rightmove, there are approx 50 self contained properties (including studios) for up to 400 pcm in Ipswich, including the occasional studio where utility bills are included (council tax is not).

In a couple of years, she will be eligible for over 60s accommodation

http://www.rightmove.co.uk/property-to-rent/property-26926688.html

This one accepts the over 55s, and those on benefits, though she should check out the service charges and if her LHA will contribute to them. Some include water rates and buildings insurance. One is £375 per month.

http://www.rightmove.co.uk/property-to-rent/property-22544216.html

There are others pitched at the over 55s

http://www.rightmove.co.uk/property-to-rent/property-17545284.html
http://www.rightmove.co.uk/property-to-rent/property-17545302.html
http://www.rightmove.co.uk/property-to-rent/property-27174962.html

Most Sheltered housing is pitched for the 60s and over but some accept those 55 and over. The Suffolk council website shows how to register for their social housing and you can see under the published allocations that while many bids run into double or treble figures for their choice based housing, many of the sheltered properties have low number of bids, some only 1. She should should register on the scheme. They state on their FAQs that some local housing associations accept residents aged 55 and above. Don't ask, don't get.

https://www.gatewaytohomechoice.org.uk/Data/ASPPages/1/65.aspx

stayinganonymous

KxMx wrote: »

Unlimited bus travel in Ipswich is £14.50 for a weekly ticket or can be cut to £12 a week if you buy the monthly pass at £48.
I appreciate this is a chunk out of your Mum's income now but if that opened the door to a better job + tax credits would be well worth it.
If she has online access then why not do a few free courses to brush up on skills.
Have you looked at her outgoings to make sure she is getting the best gas/electric rate, deals on food, single persosn'd council tax discount? Has she applied for help with health costs on a low income basis?

Unfortunately she doesn't have internet access, I do... but my mum doesn't even know how to turn on a computer :rotfl:, bless her. I'd happily teach her though!

She got her council tax reduction when she claimed for her LHA back last year, it's already got a reduction - but again, I am unaware how it all works, really wish I could help her more.

Jowo wrote: »

Of course if she moved into a cheaper property, it would help - why would it not?! Why do you think she would be worse off if she reduces her living expenses? Her maximum LHA allowance for a 1 bed in the local area does not change if her income changes - the maximum remains static, it is her income that determines how much of this she gets.

How much cheaper are you talking though? From what I have seen, house shares in her town are about £70 per week.

I am not saying that she should have it increased, I am aware there is a maximum. What I was trying to say is, if she gets a property with cheaper rent then they will just deduct more of her LHA and it will leave her in the same position she is now, surely? Maybe I am getting this all wrong, I don't know how all this LHA works, I don't claim it... I am new to all this and only know a little.

Jowo wrote: »

I have just checked the LHA direct website and it indicates that the maximum LHA for a self contained 1 bed in Ipswich is around £94 per week, so approx £410 per month. If that's the case, then if she ever lost her job, she'd have to fund the £22 per week shortfall out of her £65 JSA. Are you aware of that?

No I wasn't aware of that, like I say I don't know much about LHA.

Jowo wrote: »

Some landlords are more amenable to a LHA claimant if they are working part time or if they can offer a guarantor so if you can be her guarantor that would help, but there are risks involved for you in doing that.

When she knew she had to move out of the council house she looked at quite a few properties to rent, it took her a while to find this one (no guarantor needed). The other properties (some cheaper) wanted a guarantor but she doesn't have one. Her parents aren't here anymore and she has one sister who she doesn't see. I don't earn enough to be a guarantor, my partner does but I wouldn't expect him to be my mums guarantor the same he wouldn't expect me to be his mums guarantor - we've not been together long.

nickthegreat wrote: »

you've got a reply like that because it's a fair comment

your mum has had the same part time job for 8 years. in that time there have very likely been opportunities for a full time position at her place of work, if not in the surrounding area. it isn't unusual for people to commute 45 minutes to work, I have friends that walk that far in london. unless she is physically unable to do this, i would expect that to give her the ability to get to most jobs in Ipswich. If not she is probably living in the wrong house.

Of course, everyone is entitled to their opinion - I have no problem with that. But for starters, my mum doesn't live in a 1 million pound house while claiming benefits. She lives in a property that has one bedroom and is a !!!! hole because it's the only one she could find that didn't require a guarantor, she was desperate and had to moe out quickly. And like I said earlier, my mum has had her job for 8 years, 7 of those years she was living with her partner who earned enough money so that she didn't need to find a full time job. There was, isn't and never will be an opportunity to get a full time position because she's a cleaner. I just want to say, I don't expect people on a forum to read minds and know the ins and outs of my mums life story, so I understand why I am getting the replies I am getting . I didn't want to have to tell her life story either to be honest! But I guess it's needed to allow people to understand what's going on.

I understand some people spend a lot more time commuting to and from work than 1 hour walking there and 1 hour walking home, I am aware of this. People are making this into something when all I wanted to know is whether LHA based your living expenses on JSA. My mum does have health issues, none that would entitle her to disability and to be honest I don't think she wants to be on disability anyway. She wants to work, doesn't want to sit at home bored all day.

nickthegreat wrote: »

but your mum isn't entitled to a certain standard of living. if she is struggling she should be in a house share, like i am, so that she can save and then use that money to help change her circumstances

Certain standard of living? She has no life and she doesn't expect any different, she has nothing just her job and a roof over her head - which is great, at least she isn't homeless. She doesn't even have a home phone and she doesn't expect to have any of that on what she earns, please don't put her in the same boat as some others who want everything for nothing. She doesn't want anything and would love a better job if someone took her on.

Who can save nowadays? She has other debts, who doesn't... she can't just not pay them. These debts were from when she was with my dad, they were not made since moving out.

Jowo wrote: »

If the benefits she is receiving are correct and she cannot increase her income, then all she can do is reduce her outgoings. MSE provides a budget planner on the free tools section - get should download it, fill it in and work through the site, including the forums, to identify how to live even more frugally than she does.

I totally understand what you are saying. But I honestly don't know where she can live more frugally that she already does. She pays her rent, council tax, electric, gas and water (payments were set up by supplier) and her debt she was left with after leaving my dad, that's it. She has no car, doesn't smoke, doesn't drink, doesn't have a social life, no mobile/house phone. She can't even really afford to buy food so lives off potatoes, bread and beans. I feel really bad for her and would help if I could but I do not have spare room. Me and my partner are just managing to get by as it is anyway.

Jowo wrote: »

In a couple of years, she will be eligible for over 60s accommodation

http://www.rightmove.co.uk/property-to-rent/property-26926688.html

This one accepts the over 55s, and those on benefits, though she should check out the service charges and if her LHA will contribute to them. Some include water rates and buildings insurance. One is £375 per month.

http://www.rightmove.co.uk/property-to-rent/property-22544216.html

There are others pitched at the over 55s

http://www.rightmove.co.uk/property-to-rent/property-17545284.html
http://www.rightmove.co.uk/property-to-rent/property-17545302.html
http://www.rightmove.co.uk/property-to-rent/property-27174962.html

I appreciate your help and the links. But she has another 10 years until she's 60. Maybe I should have mentioned it before, sorry.


I appreciate everyone's help and sorry if I ever come across rude. But unless she can find a job with better money, she's pretty stuck.

I'll find the extra £40 a month for her until we can manage to get something sorted.

Jowo_2

stayinganonymous wrote: »

What I was trying to say is, if she gets a property with cheaper rent then they will just deduct more of her LHA and it will leave her in the same position she is now, surely? Maybe I am getting this all wrong,.

It will take you 10 mins on the Turn2us site to identify the impact of moving to cheaper accommodation based on the scenario of living in a £400 property versus a £500pcm property after identifying the maximum LHA on the LHA direct website. Your answer will be there. As far as I'm aware, the LHA maximum cap is the critical thing, reduced by the income the tenant receives, and therefore there is a £100 sum (the excess) which is completely written off from the calculations that she has to find herself, plus the additional impact due to her employment income on top.

It's possible that her LHA rate could decline to £90.90 per week based on the following estimate - obviously she can check this out with the local council. There is a HB calculator here than models the impact of LHA changes - you need to enter the postcode of the property to determine if it will be subject to further falls.
http://www.hbupdate.com/EnterPostcode.aspx

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

stayinganonymous wrote: »

... my mum has had her job for 8 years, 7 of those years she was living with her partner who earned enough money so that she didn't need to find a full time job. There was, isn't and never will be an opportunity to get a full time position because she's a cleaner. .

I appreciate that her health difficulties will probably deter her from finding an extra cleaning round as there are plenty of part time cleaning positions on the job centre website. Perhaps she could find full time lighter less physical work, such as on a supermarket check out?

stayinganonymous wrote: »

She has other debts, who doesn't... she can't just not pay them. These debts were from when she was with my dad, they were not made since moving out..

Ah, another big issue - benefits don't take into account people's personal debts and can make someone on a low income struggle greatly. Go to the Debt Free wanabee board to get advice how she can manage them, such as negotiating lower repayments with her creditors and other strategies. This wasn't apparent before and merely makes a bad situation even worse.

stayinganonymous wrote: »

I appreciate everyone's help and sorry if I ever come across rude. But unless she can find a job with better money, she's pretty stuck.

.

Actually you sound very caring, helpful and thoughtful. However, it seems that she needs to consider cheaper accommodation and better debt management, not just better employment. If she hasn't paid attention to her debts and if she hasn't considered a cheaper place, these are the areas you can help with.

RAS

stayinganonymous wrote: »

She got her council tax reduction when she claimed for her LHA back last year, it's already got a reduction - but again, I am unaware how it all works, really wish I could help her more..

I have a nasty feeling that she has applied for and received a single person's CT reduction but may or may nnot have applied for CT benefit. She needs to do BOTH.

stayinganonymous wrote: »

I am not saying that she should have it increased, I am aware there is a maximum. What I was trying to say is, if she gets a property with cheaper rent then they will just deduct more of her LHA and it will leave her in the same position she is now, surely? Maybe I am getting this all wrong, I don't know how all this LHA works, I don't claim it... I am new to all this and only know a little..

If her rent goes down from her current "excessive" amount to just over the LHA rate, the LHA paid will stay the same. It is only if her rent is less than the LHA rate that she will see any decrease.

stayinganonymous wrote: »

When she knew she had to move out of the council house she looked at quite a few properties to rent, it took her a while to find this one (no guarantor needed). The other properties (some cheaper) wanted a guarantor but she doesn't have one..

When does the Assured Tenancy Agreement run out? Is it possible that with a year's history of good rent payments, other landlords might view her situation more favourably?

stayinganonymous wrote: »

And like I said earlier, my mum has had her job for 8 years, 7 of those years she was living with her partner who earned enough money so that she didn't need to find a full time job. There was, isn't and never will be an opportunity to get a full time position because she's a cleaner. .

No one says she has to get full-time work; she needs another 10 hours a week employment for get working tax credit. It does not need to be with the same employer.

stayinganonymous wrote: »

Who can save nowadays? She has other debts, who doesn't... she can't just not pay them. These debts were from when she was with my dad, they were not made since moving out..

You keep using the words partner and father, are they the same person. If so, your mother needs to explore whether those debts can be dealt with as part of the divorce settlement.

stayinganonymous wrote: »

But I honestly don't know where she can live more frugally that she already does. She pays her rent, council tax, electric, gas and water (payments were set up by supplier) and her debt she was left with after leaving my dad, that's it. She has no car, doesn't smoke, doesn't drink, doesn't have a social life, no mobile/house phone. She can't even really afford to buy food so lives off potatoes, bread and beans.

You mention that you mother does not know how to use a computer. In this day and age that is a major issue if she is looking for better paid employment. She works 20 hours a week, so need to join her local library. Many of them offer free basic computer lessons and free access to computers for anything from 30 minutes to 2 hours a day.

Then she can get on freegle and freecycle. There are loads of freebies on the forum here and lots of advice on the old style and debt free wannabee forums.

Depending when she works, she might also need to explore the whoopsie sections of the supermarket shelves. Some of the most expensive have the best deals on occasion; Waitrose - lean aberdeen angus mince 500g for 39p and basic pizzas for 10p, for example.