Just received 'Housing Benefit changes' letter, not sure of the implications.

Sandwich

Hi all,

I woke up this morning to find a letter from the Council (Birmingham City council) stating that there are some upcoming changes to Housing Benefit which will likely affect me.

Honestly, when I got the letter my heart sank because I pretty much live on the breadline as it is and if they cut my housing benefit I don't know what I'll do. The reason why I'm posting is because I'd like some advice on precisely how the changes are likely to affect me. I'm a little confused.

Here's what the letter says:

"Single people aged from 25 to 34 will only be entitled to the Housing Benefit shared accommodation rate. The shared accommodation rate is based on the level of local rents for properties that are not self-contained. If you already get Housing Benefit at the one bedroom rate your Housing Benefit will go down when you move to the shared accommodation rate."

I think that means that the changes will definitely affect me, because I currently live in a one bedroom flat and I'm within that age range. Can someone just confirm for me that that is the case?

If it is the case, that's a terrible thing to do. They are effectively saying that if you claim housing benefit and you live in a one bedroom flat, then a one bedroom flat is too good for you and you will have to move into a shared house... Nevermind the fact that it's very difficult to find a new landlord willing to let a room to someone on Housing Benefit, nevermind the fact that some people just don't have the money to afford to move or for a new deposit.

Have I understood all of this properly? I'm really worried. I'm taking on all the work I can find and doing everything I can to improve my prospects of finding a long-term, permanent job. This really doesn't help.

HappyMJ

It is true...How old are you? What is your rent? Your current LHA rate and the new LHA rate you will get once the change affects you? It's a double whammy really as you are also affected by the change so that 30% of properties are affordable rule too. Has it changed to £55 per week LHA from around £104 a week LHA? That is quite a change.

Many landlords will let a room to someone on housing benefit. You would be a lodger and if you fail to pay the rent every week or fortnight then you can be asked to leave straight away. Most are reasonably forgiving and give you a week to find somewhere else.

You could always find a partner to share your flat with and then you could get the 1 bedroom self contained rate between you.

cattie

Yes, unfortunately you will be expected to make up the shortfall on your HB payments or find a cheaper property. Usually a room in a shared house is the most suitable option.

Have you checked what the shared accommodation rate in your area is, to see how much your HB will drop by?

It is hard when these new rules hit people such as yourselves, but I believe the original thought behind the changes was to limit the amount of HB payable to those who rent high cost properties when there are much cheaper options out there. As always, it seems to be those at the very bottom of the pile will have the most to lose.

rogerblack

Sandwich wrote: »

If it is the case, that's a terrible thing to do. They are effectively saying that if you claim housing benefit and you live in a one bedroom flat, then a one bedroom flat is too good for you and you will have to move into a shared house...

Essentially yes, though they wouldn't of course put it like that - this is correct.
Unless you have other needs - for example, are significantly disabled and in receipt of DLA, the above will happen.

Sandwich

Thanks for the replies guys. Just to answer some of your questions: I'm 28. My current HB is £96 and my new rate would be around £55. I do work but my income isn't much and I simply have no way of finding an extra £160 a month to make up for the shortfall.

The only positive thing about the letter I got is that it says the changes will only take effect in 9 months, starting from the end of July this year. That means March next year. Hopefully by then I'll have found a permanent job, but with things being the way they are, you never know what will happen, so I had probably better apply for a flat with my local housing association.

johnkat

I have a one bedroom housing association property, forgive my ignorance but am I affected by these upcoming changes? I do fall within the above mentioned age bracket. Thanks. Sorry to hijack the thread, worrying times these:(

Dunroamin

Sandwich wrote: »

Thanks for the replies guys. Just to answer some of your questions: I'm 28. My current HB is £96 and my new rate would be around £55. I do work but my income isn't much and I simply have no way of finding an extra £160 a month to make up for the shortfall.

The only positive thing about the letter I got is that it says the changes will only take effect in 9 months, starting from the end of July this year. That means March next year. Hopefully by then I'll have found a permanent job, but with things being the way they are, you never know what will happen, so I had probably better apply for a flat with my local housing association.

As a single person, you're very unlikely to be offered HA accommodation; why not just look for a house/flat share instead? Apart from anything else, think how much better off you'll be when you do get a full time job.

ETA

These changes were announced some months ago and, as you say, you have until next year to sort out alternatives. i think that's quite fair.

Sandwich

johnkat wrote: »

I have a one bedroom housing association property, forgive my ignorance but am I affected by these upcoming changes? I do fall within the above mentioned age bracket. Thanks. Sorry to hijack the thread, worrying times these:(

I think you'll be okay because you're not in private rented. Somebody else will probably be able to confirm this.

HappyMJ

johnkat wrote: »

I have a one bedroom housing association property, forgive my ignorance but am I affected by these upcoming changes? I do fall within the above mentioned age bracket. Thanks. Sorry to hijack the thread, worrying times these:(

No HA rents are always paid in full. There are proposals around if you have spare bedrooms to pay a small amount of the rent yourself.

whitelabel

Ive been asked by a friend to look at their letter and clarify the situation for them as the benefits agency obv closed till wed now,

They are 31, single on ESA income based work group due to genuine health reasons and get approx 104 per week and already have to pay a difference of just under £50 a month for a 1 bed flat and not able/wanting to live with other people due to part of medical reasons (they are rarely leave the property or interact with other people as it is)

They dont seem to meet any criteria be excluded from this so is it right they face essentially homelessness as their rate will be cut to £55 a week ?


If so when will this happen

the wording on the letter is :

You will have been told of the changes to the Local Housing Allowance rates from April 2011 and would have been given nine months protection from these changes. You will not be affected by the change to the shared accommodation rate until the nine months has ended.
The nine months start from 2 August 2012 when we carried out your first Housing Benefit yearly assessment

Now even im slightly confused by that, how could they have carried out a review when its not even August yet ?
They started claiming in November 2010, so the first annual review would have been then Nov 2011, and nine months from that is august 2012 so do they mean the protection ends in aug 2012 and have just ballsed up the letter or am I getting the wrong end of the stick and missing something ?

They are due to start radiotherapy around august so its really not a great time to have the upheaval of finding somewhere else to live and move, despite the help that I can offer them

thanks

Robbie64

Sandwich wrote: »

I think you'll be okay because you're not in private rented. Somebody else will probably be able to confirm this.

This is correct. From April 2013 people living in social landlord property (such as the Council and HA properties) will have a restriction placed upon their HB based upon the composition of the household so someone in a one bedroom property will be fine but a single person or a couple with no dependents living in, for example, a two bedroom property and who is of working age will have their HB reduced for each week by 14% of the eligible rent.

There will be exemptions in such a case, such as someone who needs a carer to stay overnight on a regular basis and where DLA is payable at the highest care component rate.