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Frozen (for 4 years) Local Housing Allowance?? explain...

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Frozen (for 4 years) Local Housing Allowance?? explain...

edited 9 July 2015 at 5:26AM in Benefits & Tax Credits
4 replies 2.9K views
gemmakinggemmaking Forumite
422 posts
edited 9 July 2015 at 5:26AM in Benefits & Tax Credits
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 ?

Replies

  • edited 9 July 2015 at 1:31PM
    _Truth_Truth Forumite
    1 posts
    edited 9 July 2015 at 1:31PM
    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.
  • 19lottie8219lottie82 Forumite
    6K posts
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    A lot of working people haven't had a pay rise in 4 years. That's life I'm afraid.
  • beecher2beecher2 Forumite
    3.7K posts
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    Freeze is from 2016. This year's rates have already been set
  • 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.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
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