Frozen (for 4 years) Local Housing Allowance?? explain... 9 July 2015 at 5:21AM edited 9 July 2015 at 5:26AM in Benefits & Tax Credits 4 replies 2.9K views

gemmaking

One of the Tories summer 2015 changes was this:

working-age benefits, including tax credits and Local Housing Allowance, will be frozen for 4 years from 2016-17 (this doesn’t include Maternity Allowance, maternity pay, paternity pay and sick pay)

What does this freeze on the local housing allowance mean? can you explain with an example please?

do they mean that usually the LHA rate increases every year (by an increment +£)

but for 4 years, it will not increase but be paused/frozen? is that correct ?

Will the increase of LHA of 2016 still happen? and then frozen from 'then onwards'? or he means the Freeze is now, so the LHA available now is what people will get??


What could this mean for a tenant ? (the worse case scenario?)
Does this mean tenants will have to find the money to pay any excess of their landlords rent (if the landlord increases the rent every year) right?

What other negatives could this change be for tenants in years 2, 3, 4 ?

_Truth

Hi,

The freeze means just that : your LHA is frozen and will not rise in line with inflation or even say,
at 0.5 % each year. It used to rise incrementally but it is now static for this parliament.

( I'm not sure when freeze begins , I presume from this week / as soon as possible for Mr Osborne)


In answer to your question :
"Does this mean tenants will have to find the money to pay any excess of their landlords rent - if the landlord increases the rent every year ?

Yes, they/you will have to find that excess money.

It was not a nice budget for people who need to rely on Housing Benefit in the private sector
: it was never going to be.

19lottie82

A lot of working people haven't had a pay rise in 4 years. That's life I'm afraid.

beecher2

Freeze is from 2016. This year's rates have already been set

Housing_Benefit_Officer

No doubt the Government will tell people to use the Discretionary Housing Payment system if in financial hardship but won't increase the money they give councils.