Latest news on housing benefit - For information only
You may have heard in the news recently about Government plans to change the rules on how your benefit is calculated. A lot of the things being talked about are not due to come in until 2013, but there are some important changes which are happening now which we need to tell you about.
These changes are likely to mean that the amount of Housing Benefit you get will reduce if one or both of the following apply:
- You have other adults living with you who are not your partner (these are sometimes referred to as non dependants) and/or
- You rent your home from a private landlord
We will write to everyone who might be affected personally closer to the dates so you DO NOT have to contact us in the meantime.
There are however, certain things you might want to start thinking about and this gives you some initial information that might help. To help you better understand these changes, you can read our information below.
Your benefit entitlement may change if;
- You have other adults (non dependants) who live with you
- Increase in ‘non-dependant deductions - If you have other adults living with you (who are not your partner)
- Changes which will affect people who rent their homes from Private Landlords
- Removal of the five bedroom Local Housing Allowance rate
- An end to the maximum £15.00 weekly Housing Benefit excess.
- Extra allowance if you need a carer to live in with you and to look after you.
- Reduction in all Local Housing Allowance (LHA) rates to a lower amount.
- You are under 35 and live alone in privately rented property.
We also have a questions and answers fact sheet which you can look at below.We will update this information on a regular basis as we learn more details of the changes.
There are a number of changes which will affect you if you rent your home from a private landlord and you are claiming Local Housing Allowance. You will probably be getting Local Housing Allowance if you have rented your current home since April 2008.
The changes will mean that your housing benefit will already have reduced or is due to reduce this year.
We will write to everyone who will be affected around 2 months before your review is due to take place so you know exactly when the change will happen.
It might mean, however that you cannot afford your rent any longer. If this is the case you could:
-
Talk to your landlord to see if it might be possible to renegotiate the rent
-
Think about whether or not you might be able to afford the difference
-
If you have other debts, think about getting some money or debt advice. You might be able to afford your rent if your other debts are reduced.
-
If your tenancy agreement is due to be renewed think about whether or not you are able to look for somewhere cheaper before you agree to a new period.
If you have a large family and you rent from a private landlord, the most Local Housing Allowance you can get to help with your rent is that for 5 bedrooms.
From April 2011 this reduces to the rate for 4 bedrooms.
For existing claimants this change will take affect 9 months after your claim is next reviewed.
If you are an existing claimant, then you will be exempt from this change for up to 9 months from the date your claim is next reviewed. This will allow you time to adjust to any reduction in your Housing Benefit entitlement. For example, if your claim is due to be reviewed in January 2012 any reduction in your Housing Benefit entitlement will not take effect until after September 2012.
This change was introduced from 1 April 2011.
At present, if you rent a property where the rent is cheaper than the average local rent, you can still be paid the standard local rent and keep the difference, up to a maximum of £15 a week.
If you are getting this extra amount, it will be removed on the anniversary of your claim, or when you report a change in your household circumstances or move address.
As these payments are over and above the rent you have to pay, it should not give you any difficulties in paying your landlord. You need to know about this however, because you are probably using this money for other things you need.
This change was introduced from 1 April 2011.
This change is to help disabled people who have a carer who stays overnight but who doesn’t normally live with them. The change means that your Housing Benefit will take into account the cost of an additional bedroom providing you rent a property which has a bedroom for your carer.
If you think this might apply to you, then please contact us on 0300 555 8100.
If you are an existing claimant, then you will be exempt from this change for up to 9 months from the date your claim is next reviewed unless you move address or have a change in your household. This will allow you time to adjust to any reduction in your Housing Benefit entitlement. For example, if your claim is due to be reviewed in April 2011 any reduction in your Housing Benefit entitlement will not take affect until after January 2012.
LHA rates for rooms are based upon the average rent in an area. This is being reduced from the mid point to properties in the bottom third.
For example, in each area, if there were 100 rental properties, the LHA would be based on the 30th lowest rent of those 100 properties. This means generally, that LHA will only fully cover rents of lower priced properties.
Anyone wanting to rent from a higher rented property may have to find the difference. In other words, LHA will only cover the rent of cheaper properties in an area.
The table below show the difference for Dudley in reducing the LHA rates to the lower 30%. Please note that the rates are based on March 2011, so are indicative only. The table also shows the cut from 5 bedrooms to 4.
Difference in rates
| Accomdation |
Current Rate (March 2011) |
New Rate (30th %) |
Difference |
| Shared |
£60.00 |
£55.00 |
-£5.00 |
| 1 bed |
£91.15 |
£84.23 |
-£6.92 |
| 3 bed |
£126.92 |
£115.38 |
-£11.54 |
| 4 bed |
£160.38 |
£150.00 |
-£10.38 |
| 5+ bed |
£183.46 |
£150.00 |
-£33.46 |
Please note that these are estimated figures, and not statements of what the rates will actually be reduced by, when the system changes.
In order to help you further, we have provided a couple of examples to show you how these changes may affect your benefit claim.
Example 1
Mr A currently receives the 3 bedroom rate of £126.92 per week. His benefit is then reviewed on 1 April 2011. Mr A will continue to receive £126.92 Housing Benefit per week until 9 months after the date his claim is reviewed. This means that his benefit entitlement will not reduce to the new rate of £115.38 per week until 1 January 2012.
Example 2
Mr B is currently receiving the 5 bedroom rate of £183.46 per week. His benefit is then reviewed on 1 April 2011. Mr B will continue to receive £183.46 Housing Benefit per week until 9 months after the date his claim is reviewed. Mr B’s Housing Benefit will then reduce to £150.00 per week from 1 January 2012. This means that his benefit entitlement could reduce by £33.46 per week.
The reason for this is because the maximum rate of Housing Benefit is to be limited to the Local Housing Allowance rate for a four bedroom property and the LHA rate is being reduced from the mid point to properties in the bottom third.
From April 2011 all new claimants who are single, living in privately rented accommodation and aged under 35 will have their Housing Benefit capped at the rate which applies to someone renting a room with all other facilities shared. This is irrespective of the accomodation occupied.
From January 2012, existing claimants will start to have this new rate applied to their claims as their general benefit becomes renewable.
Your benefit entitlement may change if you have other adults (apart from your partner) living with you.
Deductions can be made from the amount of benefit you get if you share your home with any adults who are not dependant on you – for example, adult children, relatives or friends. These deductions are made because it is assumed that these people should pay something towards your rent, whether they actually do so or not. If you are in this position you may already be aware that these are called non dependant deductions.
Currently, people on local housing allowance/housing benefit lose a proportion of their benefit, ranging from £9.40 a week to £60.60 a week if they have non-dependents living in their home.
For Council Tax Benefit claimants lose a proportion of their benefit ranging from £2.85 a week, up to £9.90 a week.
The amount deducted from the claimant’s benefit entitlement is based on the weekly gross income of the non dependant.
The following table non dependant charges for 2012 shows the revised deductions and how your benefit could be affected.
If you are affected by this change you will have to ask the other adults in your home to increase the money they give you or you will have to make up the shortfall from your own income.
Non dependent deductions - Housing Benefit
| Week Rates |
2011 |
2012 |
|
Under 25 on IS,JSA(IB), ESA(IR) and people in receipt of Pension Credit
|
Nil |
Nil |
|
Aged 25 and over in receipt of IS and JSA(IB), in receipt of main phase ESA(IR), aged 18 or over, not in remunerative work
|
9.40 |
11.45 |
|
Aged 18 or over and in remunerative work - gross income: less than £124.00
|
9.40 |
11.45 |
| Aged 18 or over and in remunerative work - gross income: £124 to £182.99 |
21.55
|
26.25
|
| Aged 18 or over and in remunerative work - gross income: £183 to £237.99 |
29.60
|
36.10
|
| Aged 18 or over and in remunerative work - gross income: £238 to £315.99 |
48.45
|
59.05
|
| Aged 18 or over and in remunerative work - gross income: £316 to £393.99 |
55.20
|
67.25
|
| Aged 18 or over and in remunerative work - gross income: £394 and above |
60.60
|
73.85
|
Non dependent deductions - Council Tax Benefit
| Week Rates |
2011 |
2012 |
|
Under 25 on IS,JSA(IB), ESA(IR) and people in receipt of Pension Credit
|
Nil |
Nil |
|
Aged 25 and over in receipt of IS and JSA(IB), in receipt of main phase ESA(IR), aged 18 or over, not in remunerative work
|
Nil |
Nil |
|
Aged 18 or over and in remunerative work - gross income: less than £183
|
2.85 |
3.30 |
| Aged 18 or over and in remunerative work - gross income: £183 to £315.99 |
5.70
|
6.55
|
| Aged 18 or over and in remunerative work - gross income: £316 to £393.99 |
7.20
|
8.25
|
| Aged 18 or over and in remunerative work - gross income: £394 or more |
8.60
|
9.90
|
Will I be affected by the changes to Local Housing Allowance rates?
If you are renting from a private landlord and you made your claim for Housing Benefit at your current address on or after the 7 April 2008 it is likely that you will be affected by these changes.
How do I know which Local Housing Allowance rate applies to me?
You can use the following information as a guide to work out how many bedrooms you are allowed. You are allowed one bedroom for:
- Every adult couple (married or unmarried)
- Any other adult aged 16 or over
- Any two children of the same sex aged fewer than 16
- Any two children aged fewer than 10
- Any other child
The maximum allowance, regardless of who lives in your home, is for four bedrooms.
Different rules may apply if you are under 35 or live in shared accommodation.
Please search Local Housing Allowance Rates to give you an idea of the amount of rent that might be met by Housing Benefit.
I need a property with more than four bedrooms. Will I only get benefit at the four bedroom rate?
The maximum Housing Benefit you get will be based on the four bedroom rate. You can still look for properties with more than four bedrooms, or other rooms that can be used as bedrooms, with rents that are within the four bedroom rate.
When is my anniversary date?
Your anniversary date is the date you first made your current claim. For example, if you claimed Housing Benefit on 5 September 2008 your anniversary date is 5 September.
This means that the changes the Government made from 1 April 2011, such as removing the £15 excess could affect you from 5 September 2011.
How will I know what Local Housing Allowance rates apply to me?
The Local Housing Allowance rates vary each month. Please telephone 0300 558100 for the latest rate.
If I am thinking of renting and claiming Housing Benefit, how much rent should I agree to pay?
There is information available about the levels of Local Housing Allowance rates that apply based on current rent levels.
Please search Local Housing Allowance Rates to give you an idea of the amount of rent that might be met by Housing Benefit.
The rent I am paying now is likely to be more than the Housing Benefit payment. What should I do?
You could:
- Talk to your landlord to see if it might be possible to renegotiate the rent
- Think about whether or not you might be able to afford the difference
- If you have other debts, think about getting some money or debt advice. You might be able to afford your rent if your other debts are reduced. You can get advice from other people such as a Citizens Advice Bureau
- If your tenancy agreement is due to be renewed think about whether or not you are able to look for somewhere cheaper before you agree to a new period.
My landlord won’t reduce my rent and it is going to be difficult for me to move is there any other help?
As a local authority we may be able to help some people with a Discretionary Housing Payment to meet the gap between their benefit entitlement and the rent they pay. The amount of money available for these payments is limited so we have to consider your circumstances carefully. These payments are also for short periods and will not help you to afford your rent on a long term basis.
My Housing Benefit is paid directly to my landlord, what should I do if my Local Housing Allowance rate is reduced? Or how will I know that the amount paid to my landlord will still meet my rent?
We will write to you to let you know how much Housing Benefit you are entitled to. You might find it will also help to talk to your landlord about the changes.
I am getting an excess between my rent and my Local Housing Allowance rate. Will I stop getting this?
If you are getting an excess it will stop from your anniversary date following 1 April 2011.
Do I have to be getting Housing Benefit under the Local Housing Allowance arrangements to get the allowance for another bedroom for an overnight carer?
No. This change applies to all tenants who meet the qualifying conditions and live in privately rented accommodation no matter how their Housing Benefit is worked out.The qualifying conditions are that;
-
Overnight care is required and provided
-
A spare bedroom is available for the carer
-
The carer does not live in the tenant's property
I think I will be due an increase in my Housing Benefit because I have a carer who stays overnight – who should I tell?
Contact us with this information.
You must already have an extra bedroom in your home available for the carer to use before you get this help. If you are already getting Housing Benefit and meet the conditions for this extra help, you will be entitled to it from 1 April 2011.
What about extra rooms for other circumstances such as disabled children, couples that cannot share a room or where extra space is needed for medical equipment?
The change only applies where the person making the Housing Benefit claim, or their partner, needs overnight care.
