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

Lou76

You said your Mum found out about the new LHA rates by chance, when she phoned the HA about an unrelated issue. Has she been notified of the new rates in writing?

The reason I'm asking is, I'm wondering if the lassie at the HA has got hold of the wrong end of the stick? It's possible she's misunderstood and assumed that all LHA claimants will be moved onto the new rates as of next month, regardless of their circumstances.

As you said, your Mum's new rates aren't due to take effect until much later than April 2011, so this would give her a bit of time to sort things out. If nothing else, hopefully she could clear the debts in that time, giving her more money to put towards her rent.

It would be worth her giving them a wee phone tomorrow just to double check things.

No point in her worrying unnecessarily - I should know, I'm the expert at doing just that. :rotfl:

Jowo_2

stayinganonymous wrote: »

I phoned an older cousin to talk about this and he said she could stay with him in his 2 bed flat until she gets sorted - to reduce her gas, electric and water bills etc, but he is unaware how it will interfere with his LHA and council tax benefit. He has mental health problems and is on middle rate care and lower rate mobility and income support. Does anyone know how my mums wages as a non dependent of £144 per week will interfere with his LHA and council tax benefit? It's an option she could consider.

.

Again, this can be modelled on the Turn2 us online benefit calculator from his point of view but an MSE member may be aware of the non-dependent deduction. My understanding is, like with LHA, this is going through changes to reduce the sum payable to the person on benefits, increasing the sum of housekeeping the non-dependent (your mother) is expected to pay.

She needs to check the terms of her tenancy agreement to understand when she can leave, the notice she may have to serve, otherwise her liability to pay rent continues (even if she doesn't occupy it) while her ability to claim LHA for that address ceases (because she doesn't live there!). This would make a bad situation completely catastrophic.

Your mother, and I mean this in a not nasty way at all as she reminds me of my mother, doesn't seem very financially savvy and appears to bury her head in the sand. You will probably need a copy of her tenancy agreement to get to the bottom of her commitment to stay there, and the Shelter website (or this forum) can help you understand it.

AFAIK, your mother could become his carer, and claim carers allowance for this cousin if someone else isn't claiming, however she would be subject to a wages threshold of £100 per week so would have to reduce her hours.

http://www.direct.gov.uk/en/CaringForSomeone/MoneyMatters/CarersAllowance/index.htm

Jowo_2

RAS wrote: »

...
Which shows how to put together a budget for your mum. If she is paying off 22.50 per week, that makes he situation very tight.

That, plus being outside the scope of tax credits, plus the extra rent burden she has by living in a property much higher than the maximum LHA rate, plus possibly not claiming her full CT rebate, is why the OPs mum has around £58 per week to live on.

Once the debts are better managed and her rent expense is tackled, her disposable income would probably double, perhaps more than this.

pandaspot

If she moved in with the cousin then there would be no charge for her living there as he is on dla care. So maybe that would be the answer

sunnyone

stayinganonymous wrote: »

I phoned an older cousin to talk about this and he said she could stay with him in his 2 bed flat until she gets sorted - to reduce her gas, electric and water bills etc, but he is unaware how it will interfere with his LHA and council tax benefit. He has mental health problems and is on middle rate care and lower rate mobility and income support. Does anyone know how my mums wages as a non dependent of £144 per week will interfere with his LHA and council tax benefit? It's an option she could consider.

I'm also in the process of looking for a 2nd job to earn a bit more money, we're all feeling it.

Because he gets DLA care their will be no none dependant deductions in his LHA but I dont know about ctb.

She need to think hard before she moves, can she realistically live with him and his problems?

Its just that it may be seen as though she made herself homeless if she cant live with him and has no where else to go.

pandaspot

sunnyone wrote: »

Because he gets DLA care their will be no none dependant deductions in his LHA but I dont know about ctb.

She need to think hard before she moves, can she realistically live with him and his problems?

Its just that it may be seen as though she made herself homeless if she cant live with him and has no where else to go.

There won't be a charge for his ctb either. He will lose his single person discount but his benefit would increase to cover this

Oldernotwiser

If your mother was a long term council tenant (although I don't understand why the house was only in your father's name) didn't they offer her any help with housing as she had to leave because of domestic violence?

RAS

Jowo wrote: »

She needs to check the terms of her tenancy agreement to understand when she can leave, the notice she may have to serve, otherwise her liability to pay rent continues (even if she doesn't occupy it) while her ability to claim LHA for that address ceases (because she doesn't live there!). This would make a bad situation completely catastrophic.

Absolutely; with a 12 month contract, if she moves in with the cousin, she remain liable to pay the rent until September but has no LHA allowance towards it at all.

Plus she is dependent on someone else for her housing and if it goes pear-shaped, is homeless.

stayinganonymous

RAS wrote: »

Hi

This is the standard SOA that people on DFW use http://www.makesenseofcards.com/soacalc.html

Which shows how to put together a budget for your mum. If she is paying off 22.50 per week, that makes he situation very tight.

Pleawse also find out where the deposit is secured; which scheme is it in?

and was there a full dual signed inventory whwen she moved in?

I'll check with her when I see her tomorrow. She's got all the paperwork there so will find out. But I do know there was a signed inventory when she moved in.

Lou76 wrote: »

You said your Mum found out about the new LHA rates by chance, when she phoned the HA about an unrelated issue. Has she been notified of the new rates in writing?

It would be worth her giving them a wee phone tomorrow just to double check things.

No point in her worrying unnecessarily - I should know, I'm the expert at doing just that. :rotfl:

Yes she phoned because she phoned her landlord and asked when he could pick up the rent and how much she owes (LHA are paying it directly to him, have for a few months even though she's asked them 3 times since to pay it directly to her). She asked him how much they had paid him so she would know how much to pay on top and he said he would need to check first (they had been paying the landlord £40 less per month because when she was ill a few months ago they said they had overpaid her during that period, but we can't make any sense of it. She owed £88 so for 2 months she had to pay an extra £40 rent which I helped her with and the remaining £8 this month). So she phoned them and asked how much they had given the landlord and then she asked if her LHA allowance next month would go back to normal (£270ish), but the lady on the phone said no, they would continue paying £230 (ish) and she questioned it saying she had repaid the 'arrears' and the lady said no it's because LHA rates are changing and that you will continue to be allowed the £230 towards your rent and not the £270 she's been getting since March 2010. She's had nothing in writing, she was totally unaware of it. The lady on the phone just said she should receive something in writing soon because the computers have only just been updated with the new info or something.

Jowo wrote: »

Again, this can be modelled on the Turn2 us online benefit calculator from his point of view but an MSE member may be aware of the non-dependent deduction. My understanding is, like with LHA, this is going through changes to reduce the sum payable to the person on benefits, increasing the sum of housekeeping the non-dependent (your mother) is expected to pay.

I had a quick check on the Turn2us website and couldn't find an option to add a non dependent if the renter is on disability... I could only find the option to add a non dependent if the sole renter is working.
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Jowo_2

stayinganonymous wrote: »

I had a quick check on the Turn2us website and couldn't find an option to add a non dependent if the renter is on disability... I could only find the option to add a non dependent if the sole renter is working.

Probably my fault again - another poster has indicated that because he gets DLA care their will be no non- dependant deductions in his LHA and though he will lose his CT single person discount, his income may change to cover this (plus it's only likely to be a small sum, much less than your mother pays for hers).