Local Housing Allowance - important changes from 1 January 2012

In the coalition Government's emergency budget of June 2010, changes to the Local Housing Allowance (LHA) scheme were announced. 

These changes will affect tenants who rent from, or are considering renting from, a private landlord and claim Housing Benefit.

Changes to the shared room rate from January 2012

From 1 January 2012, the LHA shared room rate which applies to most single people under 25 will be extended to people aged under 35.

This change was originally planned for April 2012 but has been brought forward 3 months and will take effect from January 2012 to coincide with the end of the transitional protection for existing tenants.

This means that single tenants under the age of 35 making a new claim on or after 1 January 2012 will only be entitled to the shared room rate rather than the one bedroom rate.  Existing customers will move to the shared room rate at the same time as their transitional protection ends.

This restriction does not apply to single people who have a disability and qualify for a severe disability premium in the assessment of their Housing Benefit, Income Support or income-based Jobseekers Allowance.

To qualify for a severe disability premium the recipient must, live alone with nobody receiving Carer's Allowance for looking after them and, receive one of the following benefits

• The middle or highest rate of the care component of Disability Living Allowance.
• Attendance Allowance at any rate.
• A benefit which is treated as Attendance Allowance.

What can I do if I can no longer afford to pay my rent when my rate changes?

Talk to your landlord about the changes and see if they will reduce the rent on your property. As an incentive if they agree to reduce your rent to an affordable level we can pay your Housing Benefit directly to them. If it’s not possible to renegotiate your rent you could either

• Make up the shortfall yourself.
• Contact an advice agency for help.
• Start looking for cheaper accommodation.
• Contact the Greater Manchester Local Housing Allowance Team who can provide advice about how these changes will affect you and help with your housing options. This includes providing practical help and support and talking with your landlord. Contact the special team provided by Greater Manchester local authorities at http://www.helpwithrent.org.uk/ or ring 0845 120 2093.

More help with hardship

You may get extra help through a Discretionary Housing Payment (DHP) if you don't get full Housing Benefit and you're still paying something towards your rent.

For more information on DHP go to get more Housing Benefit.

Previous changes to LHA from 1 April 2011 and who will be affected

You'll be affected if:

• you make a new claim for Housing Benefit from 1 April 2011; or
• you already get Housing Benefit; but
• if your circumstances don't change your LHA rate could stay the same for up to 9 months after the next review of your claim, after 1 April 2011.

I get Housing Benefit - what changes in circumstances will affect my LHA rate?

• change of address;
• change in household - someone leaves the property, resulting in less bedrooms being needed; or
• change in household resulting in more bedrooms being needed, but in this case the new rules will only apply if you get more benefit. If the new rules would result in less benefit, you'll continue to get your existing LHA rate for nine months.

The changes from 1 April 2011

Weekly excess - removal of the up to £15 per week excess benefit 'top up'.

Size restrictions - the most number of bedrooms that LHA helps with is reduced from 5 to 4, if you need more bedrooms, you'll need to find the extra rent.

LHA 'cap' - LHA has set amounts for the rent depending on the area and number of bedrooms. From April 2011 a 'cap' is introduced so that - whatever the rent is the rate will not exceed:

• £250 for a 1 bedroom property; 
• £290 for a 2 bedroom property; 
• £340 for a 3 bedroom property; 
• £400 for a 4 bedroom property.

These 'caps' don't affect LHA rates in Rochdale, but may apply if you move to another area. 

Help for disabled people - an extra bedroom can be allowed for non-resident overnight carers of a disabled person claiming Housing Benefit.

Reduction in LHA rates - LHA rates have been based upon the median (average) rent charged in an area - this is to be reduced.

LHA rates will reduce to a lower amount so that about 3 in 10 properties for rent in the area should be affordable to someone claiming Housing Benefit, rather than the current 5 in 10 properties. 

Tables

These tables show the expected reduction in LHA rates for Rochdale and also the removal of the 5 bedroom rate. Note, the rates are based on February 2011 rents so they may change.

  
What's this?

• About us
• Terms and conditions
• Contact us