Important News

Important Housing Benefit Chages effective from January 2012

Shared room rate

Under Local Housing Allowance rules single people aged under 25 with no children are normally assumed to be living in shared accommodation. This means the maximum amount single people aged under 25 (with no dependants) can get is set in relation to the cost of renting a room in a shared house or flat, rather than the cost of renting a self-contained property.

From January 2012 the age which this restriction applies to will increase to 35. Existing claimants aged between 25 and 35 will move to the shared room rate at the same time as their transitional protection ceases.

Couples and single people aged 35 or over

If you are single and aged 35 or over or are a couple you are entitled to the single bedroom rate of Local Housing Allowance. However, you may not get the single bedroom rate of LHA if you share some or all of the facilities in the property you rent. In this case the shared accommodation rate applies. For more information see joint tenant.

Exemption for severely disabled and people who recently left care

If you receive the Severe Disability Premium in any of your benefits or if you are a care leaver aged under 22 then there are special rules that could exempt you from the shared room rate. These exemptions will continue to apply when the applicable age increases to 35.

Please contact your local council for information on your entitlement.

Important Housing Benefit changes effective from April 2011

Local Housing Allowance

• £15.00 weekly Local Housing Allowance Excess Abolished.

Some customers can receive more Local Housing Allowance than their rent, up to a maximum of £15.00 per week, this is known as "Local Housing Allowance Excess".  From April new claimants will not receive this excess money, and the maximum amount of benefit will be the amount of rent that is eligible for Housing Benefit.  Existing claimants will no longer receive the amount from the anniversary date of the claim.  There will be no transitional protection for this change.

• Local Housing Allowance 5 Bed Rate Removed

From April 2011 the maximum rate payable will be for 4 bedrooms irrespective of the size of the household.  New claims will be affected immediately.  Existing customers will not be affected until the anniversary date of their claim.  They will then normally receive 9 months transitional protection.

• Local Housing Allowance Rates to be Capped

The maximum weekly rates will be:

• £250 for a one bedroom property

• £290 for a two bedroom property

• £340 for a three bedroom property

• £400 for a four bedroom property

• Local Housing Allowance Rates to be set at 30th percentile

Local Housing Allowance rates are currently set at the 50th percentile of local private rents.  From April 2011 Local Housing Allowance will be set at the 30th percentile of local private rents and rates will reduce.  Please follow this link to the Valuation Office website to see how this may affect you.

New claims will be affected immediately by this change.  Existing claims will not be affected until they reach their Local Housing Allowance anniversary date, they will then normally receive 9 months transitional protection.

• Transitional Protection For Existing Customers

Existing customers will not be affected by the reduced Local Housing Allowance rates until they reach their anniversary dates, and then they will normally receive 9 months transitional protection.  The exceptions to this are when the following circumstances apply.

• If they change address.

• If there is a change in their household so that they are entitled to a different category of dwelling.

Non Dependant Deductions to Increase

Non dependent deductions for Housing Benefit

Description	2010 weekly deduction	2011 weekly deduction
aged 18 or over and not in remunerative work:	7.40	9.40
aged 18 or over and in remunerative work:
- gross income: less than £122.00	7.40	9.40
- gross income: £122 to £179.99	17.00	21.55
- gross income: £180 to £233.99	23.35	29.60
- gross income: £234 to £309.99	38.20	48.45
- gross income: £310 to £386.99	43.50	55.20
- gross income: £387 and above	47.75	60.60

Non Dependent deductions from Council Tax Benefit

Description	2010 weekly deduction	2011 weekly deduction
aged 18 or over, and in remunerative work:
- gross income less than £180	2.30	2.85
- gross income: £180 - £309.99	4.60	5.70
- gross income: £310 - £386.99	5.80	7.20
- gross income: £387 or more	6.95	8.60
Others aged 18 or over	2.30	2.85

• Room for a Non Resident Carer

When working out the correct rate for Local Housing Allowance we have to look at the number of rooms needed according to the number of people in your household.  From the 1st of April 2011 the regulations are changing so that where applicable we are able to include an extra bedroom for a non resident carer.

This change will apply where the customer, their partner or both need an overnight carer.  It will not apply to any other members of the household including children.  In order to qualify for the additional room the customer will need to satisfy the following criteria.

• The carer has to have a home elsewhere

• The carer provides the overnight care that the claimant or partner needs

• An extra bedroom is available to be used

• They receive the higher rate of either Attendance Allowance or the care component of the Disability Living Allowance, or can provide evidence that overnight care is both required and provided.

If you receive overnight care from a non-resident carer please contact us by telephoning the direct number in the panel opposite or by email.

Frequently Asked Questions on April 2011 Changes

• Will I be affected by the changes to Local Housing Allowance rates?

• I have been getting Housing Benefit since before April 2008 could the changes affect me?.

• Will I be affected by the capped rates?

• How do I know which Local Housing Allowance rate applies to me?

• I need a property with more that four bedrooms, will I only get the four bedroomed rate?

• When is my anniversary date?

• Could I be affected earlier than my anniversary date?

• The rent I am paying now is likely to be more than the Housing Benefit I will get when the changes come in, what should I do?

• My landlord won't reduce my rent and it is difficult for me to move, is there any other help?

• I am getting the extra £15.00, will this stop?

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 7 April 2008 it is likely that you will be affected by these change.

I have been getting Housing Benefit since before April 2008 could the changes affect me?

Providing you continue to live in the same property and you don't have a break in your Housing Benefit claim the Local Housing Allowance arrangements will not apply to you.

If you have a non dependant living with you your claim will be affected by the increase in non dependant deductions.

Will I be affected by the capped rates?

The capped rates are unlikely to affect anyone within the Great Yarmouth area, they are most likely to affect people renting properties in Central London.

How do I know which Local Housing Allowance rate applies to me?

You can use the following information as a guide to 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 2 children of the same sex under 16

• any 2 children under 10

• any other child

Different rules may apply if you are under 25 or live in shared accommodation.

I need a property with more than four bedrooms, will I only get the four bedroomed rate?

Yes, from April 2011 the maximum rate will be for four bedroomed properties.  

When is my anniversary date?

Your anniversary date is the date you first made your current claim.

Could I be affected earlier than my anniversary date?

Yes, if you change address you will then be assessed under the new rules straight away, with no transitional protection.  Also if there is a change in your household the changes will apply straight away.

The rent I am paying now is likely to be more than the Housing Benefit I will get when the changes come in, what i should do?

Speak to your landlord as soon as possible, they may drop the rent on your property.  If that isn't possible you may need to look for somewhere cheaper.

My landlord won't reduce my rent and it is difficult for me to move, is there any other help?

A Discretionary Housing Payment may be available to help you meet the gap between your benefit and your rent.  These payments are discretionary and each case is assessed on its individual merit.  Your finances and personal circumstances are taken into account.  The budget for these payments is limited so all your circumstances will be carefully considered.

I am getting the extra £15.00, will this stop?

If you are receiving the top up amount this will stop on your anniversary date.