Housing benefit income calculation when your rent exceeds the LHA

sourpuss2021

I’m about to have a rent increase which will take it about £150 above the LHA.  

I was thinking really you’d hope that your income would be disregarded pound for pound until you had reached this shortfall.

So in addition to the applicable amount which is about £320, they would also ignore the next XXX of your income that was the difference between the LHA and the actual rent you are contracted to pay.

But I expect it doesn’t work like that - to discourage claimants from renting expensive properties? But everywhere is way above the LHA.  And instead they will deduct 65% of any income over the applicable amount from your housing benefit.

So to cover a £150 shortfall you actually need to earn about £430 above the applicable amount, because there is no such thing as an excess rent disregard.

Have I got this right?

Lifematters

Correct. If the shortfall is causing you hardship you could apply for a Discretionary Housing Payment. This is not guaranteed and is only paid on a temporary basis to give you time to find cheaper accommodation or try negotiate a lower rent with your current landlord

sourpuss2021

Lifematters said:

to give you time to find cheaper accommodation or try negotiate a lower rent with your current landlord

Or just as likely, to dig up a pot of gold from the end of a rainbow!

Thanks for your reply though.  It seems mad and unfairly punitive that it’s dealt with like this.

HillStreetBlues

The LHA is a complete joke,  just looked at my area 15 mile radius and the cheapest is £200 above the LHA.