housing benefit

bargainbunny

Hi just received a letter stating that I had been overpaid hb
my daughter moved out in Oct and its due to occupancy change

Can they do this as my rent is still the same and its actually a very cheap
property ?
Im a single parent carer with 2 children here now and its classed as a 4 but the 4th room is walk in room only too small for a bed and its off one of the bedrooms.
My money is the same but im getting less hb

thanks

Caz3121

are you in a private rental?
If so this is based on bedroom entitlement based on the number of occupants, depending on the ages of your children this may have taken you from qualifying for the 4 bedroom rate to qualifying for the 3 bedroom rate when your daughter moved out

bargainbunny

hi yes im in private rented
my oldest was 20 then i have 1 boy 14 and 1 girl 16

do you think id have to move as now its been reduced i can hardly afford it now as rent has gone up too by £20 month before these further reductions .

I dont live in an expensive area and compared to similar properties in the same rd mine is £670 month whilst the others are £725+
mine was cheaper as it needed alot of work which i did to keep a low rental property.

Ive been here 2yrs now

Caz3121

You can check the LHA rates here https://lha-direct.voa.gov.uk/search.aspx
they have gone down also, this is the maximum they will pay, what size property you choose to live in does not come into it.
your options will be to move or find a way to cover the gap (although if your income increases your housing benefit will reduce)
You can enquire about discretionary housing payment for the gap but this would be a short term temporary measure normally when people are stuck in a tenancy

Mara69

You only need a three bed, not a four. As it is classed as a four bed, your LHA will be lowered accordingly.

bargainbunny

thanks just did calculations which as a 3 bed are

Three Bedrooms Rate:£155.34 per week from when tenancy started
2010
but mine is
old entitlement
10 oct 2011- 23 oct 2011 £165.00
24oct - 11 dec £150
12 dec - 25 dec £150

new entitlement now £144.23

so my new payment top up would be £100 a month
seems alot on a low rental , how on earth people in a property at £725 manage i dont know..

I thought the changes only affected new claims?

BigAunty

The value of the property compared to others, the size of the fourth bedroom, the duration of your tenancy and the recent rent increase are factors that are entirely and totally irrelevant to your LHA rate. It's tempting to look at the wider context but much better to start looking at the actual rules!

This will be calculated according to your income and the age/sex of the current occupants. You can find a LHA calculator on your local council website or on the Direct Gov website (which may give you the maximum rate you can get), plus double check your full benefit entitlements on the Turn2us online benefit calculator (which will take into account any relevant income).

You could also see if you can get any discretionary housing benefit though you shouldn't rely on getting it. You could see if its classification as a 4 bedroom can be challenged, not sure how this is defined or what the process is though.

You mention that you are a carer - is this for a disabled child or do you mean you are a stay at home mum?

So, yes, if your LHA rate is much lower than the rent and you cannot afford to top it up from other income, then you should look at moving to a cheaper property. This is now set at the cheapest third of local market rents. Some local councils run rent deposit guarantee schemes for low income/housing need applicants.

The following link is handy for you to understand how the LHA rates have changed

http://www.moneysavingexpert.com/family/housing-benefit

BigAunty

bargainbunny wrote: »

I thought the changes only affected new claims?

No, I think that virtually all new private tenants have been affected retrospectively, though some changes are timed with transitionary periods, such as x months from the anniversary of the claim.

The tiny minority that aren't are still on the original housing benefit system from quite a few years ago because they haven't had a break in their claim by moving address, for example, since LHA was introduced.

bargainbunny

hi the problem is that it is already a lower priced property
the one i had previous to this was £1000 a month and it was the only one that would take the rent dep scheme which was the only reason i took on that property.. I then saved and moved to a cheaper property in a worse area .
Ive had this tenancy for 2yrs now and just signed for 12months
my childrens ages are 14 almost 15 and a 16yr old..
Yes im a carer as my son has autism the 14yr old..
Just dont know if it be worth trying get it classed as a 3 bed as it wouldnt make any difference to rent unless my LL reduced it which he is unlikely to do as its cheap anyway.

BigAunty

So that 4th bedroom is actually just a cupboard? No window? No one can sleep in it because it is actually too small for even a single bed?

And does your son receive DLA and you receive carers allowance? I would assume the council is more likely to grant discretionary LHA to households with disabilities.

pmlindyloo

The LHA rates have gone down
The government has reduced the LHA rates. Before the April 2011 changes, about five in ten properties in your area were affordable for people on Housing Benefit. From April 2011 the rates have gone down, with the result that only about three in every ten properties are affordable for people on Housing Benefit. For example the three bedroom rate in March 2011 was £144.23 but for June 2011 it is £126.92. The one bedroom rate in March 2011 was £103.85 but for June 2011 it is £93.46.
If you were claiming from us before 1 April 2011, the rules tell us to delay using the reduced LHA rate to work out your benefit until nine months after your first 'anniversary date' (the date we look at your LHA rate again) after April 2011. The government has introduced this nine month delay to help you plan what to do if your benefit goes down. If you have a change in your household that means you need more bedrooms before your 'anniversary date', then the nine months start from the date of your change. If you move or have a change that means you need fewer bedrooms before the end of the nine months, then we must use the reduced LHA rate from the date of your move or your change. (Manchester council website)

You will now be under the new rates because your circumstances have changed.

Your options are:

1. Negotiate with your landlord to try and reduce your rent.
2. Move to a cheaper property.
3. Ask about a discretionary housing payment.

It does not matter whether your house is classed as a 3 bed or a 4 bed. For Housing Allowance purposes you are only entitled to the 3 bed rate.