Changes to Housing Benefit from April 2011

The Government is making changes to the way Housing Benefit is calculated, for tenants who rent their property from a private landlord, from 1st April 2011.

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 1st 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.
• introduce caps so that LHA weekly rates in any area cannot exceed:
  £250 per week (or £1083.33 per month) for a one bedroom property
  £290 per week (or £1256.67 per month) for a two bedroom property
  £340 per week (or £1473.33 per month) for a three bedroom property
  £400 per week (or £1733.33 per month) for a four bedroom property
• Local Housing Allowance rates will reduce to a lower amount so that about 3 in 10 properties for rent in the areas should be affordable to people on Housing Benefit rather than 5 in 10 properties as now. The new rates will be at what is known as the 30th Percentile.
• Where you have an extra bedroom that is used by someone whilst providing necessary overnight care for you or your partner this can be included where the carer lives elsewhere.

When will the changes affect me?

If you are already claiming Housing Benefit:

You will normally have more time before your rate changes. If your circumstances don't change, you will have nine months at your current Local Housing Allowance rate from when your local authority next assesses your Housing Benefit after 1st April 2011.

It is important to remember that after your assessment the Housing Benefit you get won't be higher than the rent you pay. For example, if your next assessment is due in June 2011 the changes to Local Housing Allowance rates will not affect you until March 2012. But you will no longer get more Housing Benefit than you pay in rent. The changes may affect you sooner if:

• You are getting Housing Benefit and are planning to move home or
• Your household is changing such as someone leaving or coming to live with you

The changes will affect new customers from 01 April 2011.

Advice

If you are claiming or intending to claim Housing Benefit you need to be aware of the changes and when you will be affected before negotiating or entering into a new tenancy agreement with a private landlord. You can seek further advice from the Housing Benefits Department or your local |Citizens Advice Bureau. The Housing Options Team at the Civic Centre can be contacted for housing advice.

Further information

To help you plan for the changes next year you can compare the current rates against what the new rates are likely to be for where you live, from the |Valuation Office Agency.

You can get more information at |Directgov which provides information on public service in one place, including up to date information on the Housing Benefit changes.