People in private rent accomodation and reforms

bundance

Taken from the DWP website

Reform of Housing Benefit

• From April 2011 we will start making a number of changes to Local Housing Allowance. These reforms will not affect social housing tenants, who account for 69 per cent of the housing benefit caseload. The reforms include:
  • restricting the maximum Local Housing Allowance level to the four bedroom rate and applying overall weekly caps to the rates as follows:
  • £250 for a one bedroom property
  • £290 for two bedrooms
  • £340 for three bedrooms and
  • £400 for a four bedroom property
  • setting Local Housing Allowance rates so that 3 in 10 properties are affordable to Housing Benefit customers rather than 5 in 10 as is currently the case.
  • Removing the up to £15 weekly Housing Benefit excess that some customers can receive under the Local Housing Allowance arrangements.

I have some friends who claim housing benefit, and are in private rented accommodation, does the above mean that those in privately rented accomodation will have their housing benefit cut to £250 a week?

I want to know before I tell my friends.

Many thanks.

Aarons_mummy

If they claim housing benefit rather than LHA (local housing allowance) I believe (someone will be able to advise if I'm wrong) that they would not be affected.

In private rent the levels are being cut to a certain level for each group. Depending on your area depends on the level of rent paid, i.e the maximum in my area right now is £115 (2 bed) or something to that effect per week, this is going down to £103 per week, so it isn't £250 across the board.

I have read on here that it's on the anniversary of your claim so it may not be straight away.

I hope that makes a little sense, I'm sure someone much more articulate will be along soon to explain where I've went wrong

MrsManda

If a person makes a new claim after the 1st April then the changes will apply. In your friend's case providing her circumstances don't change so that she needs to reapply for HB then she won't be affected by the changes in rates until 9 months after her council reassess her claim.

In terms of the excess £15, this will apply to your friend from the 1st April 2011.

Changes you need to think about before moving or signing a new tenancy


There are important changes to Local Housing Allowance from 1 April 2011.
If you are making a new claim, these changes will apply to you from this date.
If you are already claiming Housing Benefit, you may have more time before these changes apply to you. If your circumstances don’t change, you will continue to get the same rate of Local Housing Allowance as you get now. After 1 April 2011, this will continue for nine months after your local authority next assesses your Housing Benefit.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018928

RAS

You really need to find put if your friends are actually getting Housing benefit, which is usually restricted to people in social housing, or whether they are getting Local Housing Allowance, which replaced HB for people in private rented accomodation.

bundance

AArons mummy

Thanks very much for your post, it was helpful.

MrsManda

Thank you for the info on LHA.

pandaspot

The £15 excess will be removed from the anniversary date not from April.

Ras the above person states that his friends are private tenants. Those of us who work in housing benefits, we don't call housing benefits by different names, lha or hb. It's the same thing. Granted the way we pay etc is slightly different but end of the day it's all housing benefit.