Page last updated at 15:20 GMT, Thursday, February 24 2011
Housing Benefit is changing from 1
April 2011 for private tenants
The Government is making changes to the way Housing benefit is
calculated, for private rented sector tenants from 1 April
2011. These changes only affect you if your Housing Benefit
is calculated under Local Housing Allowance (LHA) rules.
What will the changes mean?
It is possible that the amount of Housing Benefit you get to pay
your rent could go down. If your Housing Benefit is paid to
your landlord, the amount your landlord gets for your rent could go
down.
If you are getting or thinking of claiming Housing Benefit,
you need to consider these changes before you renew or make a
new tenancy agreement with a private landlord.
What are the changes from 1 April 2011?
From 1 April 2011 the Government will:
- end the maximum £15 weekly Housing Benefit excess that some
customers can receive under the LHA arrangements
- remove the five bedroom Local Housing Allowance rate so that
the maximum level is for a four bedroom property
- LHA rates will be reduced so that about three in ten properties
for rent in the area should be affordable to people on Housing
Benefit rather than five in ten properties.
In most cases the Government will protect you from the changes,
if you claimed Housing Benefit before 1 April 2011 for a limited
period of time, to give you more time to consider your options.
When will the changes affect me?
If you make a new claim or change of address claim on or after 1
April 2011, you will be affected by the following changes straight
away:
- The maximum level will be for a four bedroom LHA rate, with no
five bedroom rate anymore
- No maximum £15 weekly Housing Benefit excess that some
customers previously received under the LHA arrangements
- LHA rates will be based on rents for three in ten properties in
the area being affordable to people on Housing Benefit rather than
five in ten.
We get the LHA rates monthly from the Valuation Office Agency
(VOA), so you can check the LHA rates before you claim and before
you make a new tenancy agreement with a private landlord. For
further information visit the LHA Direct
Website or telephone us on 023 8068 8046.
Is there any protection from the changes to LHA?
If you are already claiming Housing Benefit before 1 April 2011,
you will normally have more time before the changes to LHA affect
you. This is called transitional protection. If your
circumstances do not change, you will have nine months from your
LHA anniversary date at your current LHA rate. If you change
address or have a change in your household that reduces your LHA
bedroom entitlement, protection from the changes stop. The
change that is not protected is the loss of the excess Housing
Benefit, of up to £15 weekly that some claimants get. If you
got this before 1 April 2011, you will lose it at your LHA
anniversary date. So Housing Benefit cannot be higher than
the rent you pay to your private landlord.
For example, if your LHA anniversary date is in June 2011, you
will be protected from the changes due to the caps and LHA rates
based on three in ten rents being affordable in the area, until
March 2012. However, if you got £15 excess Housing Benefit, you
will lose it in June 2011.
When is my anniversary date?
Your anniversary date occurs each year after the date you made
your current claim. For example, if you claimed Housing
benefit on 5 September 2010 your anniversary date will be 5
September 2011. If you got £15 excess you would lose it on
September 2011. However you would be protected from other LHA
changes for nine months until June 2012.
Can my anniversary date change?
Yes. If any of the following changes occur , your
anniversary date will change:
- A single person becomes 25 years old
- A non dependant joins or leaves your household
- A child becomes 10 or 16 years old
- Your claim is backdated to an earlier date
This will change your anniversary date to a year from the change
in your household or the earlier start date of your backdated
Housing Benefit.
How will LHA rates based on rents for three in ten properties
being affordable affect me?
From 1 April 2010, LHA rates from shared room rates to four
bedroom rates are going down. This is because the VOA will no
longer provide LHA rates based on rents in your area for five out
of ten being affordable.
To give you an idea of what LHA rates might be from April 2011,
the VOA is publishing what they call LHA 30th percentile rates each
month. These are only estimated figures, but will give you an
idea of how much lower the LHA rates will be. Visit the
VOA LHA Direct website.
The LHA Rates for Eastleigh's Broad Rental Market Area (BRMA) is
in a list which is for the whole of England. Eastleigh's BRMA
is Southampton. If you do not know which BRMA you live in, or
are thinking of moving to, use the postcode
search facility first or ask us for help. Real LHA rates
based on three in ten properties being affordable, will be
available from March 2010 onwards from the VOA LHA Direct
website.
When will LHA rates based on rents for three in ten properties
being affordable affect me?
If you make a new or change of address claim on or after 1 April
2011, LHA rates based on rents for three in ten properties being
affordable will affect you straight away.
If you were already claiming Housing Benefit before 1 April
2011, you will be protected from LHA rates based on rates for three
in ten properties being affordable for nine months after your LHA
anniversary date.
What if I think I will be affected by the LHA changes in the
future?
You can talk to your landlord about the changes and see if they
will drop the rent on your property. If you know you are
about to renew your tenancy agreement, you need to make sure the
rent will be affordable after your protection runs out. The
protection is there, to give you more time to start looking for
somewhere cheaper. If your landlord agrees to reduce the rent
to or near the lower LHA rate, we could pay them Housing Benefit
direct.
My landlord won't reduce the rent or I have renewed my
agreement
The Housing Benefit Section may be able to help you with a
Discretionary Housing Payment to meet the shortfall. The
amount of money available is limited. They will consider your
circumstances carefully. If you want to talk to them please
telephone 023 8068 8046
Further information
If you want to know more about the changes and how they will
affect you please telephone 023 8068 8046, visit us at The Civic
Offices, Leigh Road, Eastleigh, SO50 9YN or email revbens@eastleigh.gov.uk
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