| dmmproperties.co.uk | |||
| |||
| All Rights Reserved... |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contact and news
|
April 2011 changes to HB | How it will affect customers |
The Local Housing Allowance (LHA) rate will be set at a lower rate so that 3 in every 10 properties in an area are affordable instead of 5 in 10 previously | Most customers who get HB under the LHA rules will be affected by the change. If the eligible rent* charged for the accommodation is more than the new LHA rate HB will go down. There will be a small number of customers who already have low rents. If their eligible rent* is lower than the new LHA rate they will lose any top up for rents that are below the LHA rate. The new LHA rate will apply from the next LHA anniversary (review) date. If the new rate means that the LHA rate goes down, claimants will be protected for 9 months before the new rate starts. This is designed to give claimants time to find alternative solutions e.g. finding cheaper accommodation, negotiate a lower rent etc. Most customers have a LHA anniversary date of 12 months from the date the last LHA rate was set. This may be different for some claimants who have a change in size requirements. If the size requirements change or a claimant moves then the 9 month's protection stops. |
Up to £15 top up for rents below the LHA rate removed. | For most customers who have an eligible rent* that is below the LHA, the top up will stop from their next LHA anniversary date but it may end sooner if there is a change in the size of their household. |
LHA weekly rates are to be capped at upper levels for each property size One bedroom - £250 Two bedrooms - £290 Three bedrooms - £340 Four bedrooms or more* - £400 *The four bedroom rate will be the upper limit for LHA claims, replacing the existing 5 bedroom cap. | For customers who have an eligible rent* that is more than the LHA cap, the capped rates will apply from the next LHA anniversary date. For example – a claim is currently paying HB at an LHA rate of £500 for a 4 bedroom house. The LHA rate is due to be reviewed in September 2011. The capped rate of £400 will be applied and HB reduced by £100 per week. Most customers have a LHA anniversary date of 12 months from the date the last LHA rate was set. This may be different for some claimants who have a change in size requirements. THIS WILL NOT HAVE ANY EFFECT IN THE WEST MIDLANDS AS RENT LEVELS ARE BELOW THESE RATES - HOWEVER ANY PROPERTIES CURRENTLY PAID AT THE 5 BEDROOM RATE WILL BE REPLACED BY THE 4 BEDROOM RATE |
Amending the Local Housing Allowance (LHA) size criteria rules to allow for an additional bedroom for disabled claimants whose condition requires a live-in carer. | Customers who have been assessed by Social Services as requiring a live in carer will be entitled to claim the Local Housing Allowance (LHA) rate for an extra room. |
Discretionary Housing Payment grants will be increased. | For those customers who are worst affected by the changes, The Council will have more discretion to make up the shortfall in individual cases. |
Temporary extension of the direct payments safeguards provisions to give wider discretion to make payments direct to landlords if it will help customers secure or retain a tenancy. | The Local Authority will be able to pay HB directly to the landlord where landlords are prepared to reduce rents to a level that is affordable for the customer (usually at or around the LHA level). At present we will only pay landlords where there is evidence a customer cannot or will not pay their rent. |
Deductions from HB for other adults (non-dependants) living in the household will begin to be increased at a faster rate over the next 3 years. | The other adults in the household will be expected to contribute more towards the rent payable on the home. The maximum non-dependant deduction will be £60.60 per week for HB and £8.60 per week for CTB. |
Removing the 'baby premium' that currently applies where the claimant is responsible for a child under the age of one. | Customers who have a child under 1 will lose up to £6.30 per week from their HB. This may be offset, in part, by reduced income from child tax credits that will also be affected by this rule. |
Amendment to allow for a full disregard of income from special guardianship payments. | Customers who get special guardianship payments will have this income disregarded. HB should go up for these customers. |
Each year the Government increase most benefits, including HB on the Consumer Price Index. | HB will go up at a lower rate than in previous years. The increase was based on the rise in prices shown in the Retail Price Index. They will now increase benefits using the lower Consumer Price Index. |
April 2012 - Changes to housing benefit
Please see here for any information on changes that have happened or are likely to happen to housing benefit in 2012.
April 2012 changes to HB | How it will affect customers |
Discretionary Housing Payment grants will be further increased. | For those customers who are worst affected by the changes, Merton will have more discretion to make up the shortfall in individual cases. |
Shared Room Rate in Local Housing Allowance extended to all single claimants under 35 with no children | Currently the shared room LHA rate applies to all single claimants under the age of 25 who do not have children. This will apply to those under 35 from April 2012. The shared room rate is lower than the current 1 bedroom rate used for single claimants over 25. We anticipate HB for most of these customers to go down from the next LHA review date. Most customers have a LHA review date of 12 months from the date the last LHA rate was set. This may be different for some customers who have a change in household circumstances. |
April 2013-14 - Changes to housing benefit
Please see here for any information on changes that have happened or are likely to happen to housing benefit in 2013-14.
April 2013 changes to HB | How it will affect customers |
LHA rates will be increased on the basis of the Consumer Price Index (CPI) instead of market rents. | Currently LHA rates are set by looking at market rent levels which may increase or decrease according to market rents. From this date LHA rates will increase in line with CPI. |
Size criteria rules will be introduced for working age claimants living in the social rented sector (precise arrangements yet to be announced by DWP) | Currently LHA rates apply to private rented properties and the amount of LHA rate is restricted by size – depending on the number of people in the household and their ages. It is anticipated that customers who rent from the social rented sector – such as Housing Associations will also be restricted in this way. We will publish more details about this when known |
HB entitlement levels will be reduced to 90% after 12 months for those claimants receiving Job Seekers Allowance. | It is anticipated that if a customer has been claiming HB for more than 12 months their HB entitlement will reduce by 10%. |
The maximum amount of income from benefits will be restricted to the average income for working families - currently approximately £500 per week. For single out of work people this is £350 | HB will reduce if it takes the total of all benefits over these levels. It does not appear to affect working families, pensioners, those on disability related benefits |
April 2014 changes to HB | How it will affect customers |
Universal Credits start | No new claims for HB will be accepted. HB will be replaced by a Housing element to the Universal Credits. Full details of how this Housing element will be calculated are known. HB claims that are already in payment at this date will be moved over to Universal Credit by 2017. |
Category | Type of property | Weekly Amount from 1 FEB 2011 | Monthly Amount from 1 FEB 2011 |
A | 1 room with shared living room and: a) shared kitchen, toilet and bathroom or b) exclusive use of kitchen/kitchen facilities or c) exclusive use of bathroom and toilet with shared kitchen | £60.00 | £260.00 |
B | 1 bedroom property | £91.15 | £394.98 |
C | 2 bedroom property | £109.62 | £475.02 |
D | 3 bedroom property | £126.92 | £549.99 |
E | 4 bedroom property | £160.38 | £694.98 |
F | 5 bedroom property | £184.62 | £800.02 |
Category | Type of property | Weekly Amount from 1 FEB 2011 | Monthly Amount from 1 FEB 2011 |
A | 1 room with shared living room and: a) shared kitchen, toilet and bathroom or b) exclusive use of kitchen/kitchen facilities or c) exclusive use of bathroom and toilet with shared kitchen | £60.00 | £260.00 |
B | 1 bedroom property | £91.15 | £394.98 |
C | 2 bedroom property | £109.62 | £475.02 |
D | 3 bedroom property | £126.92 | £549.99 |
E | 4 bedroom property | £160.38 | £694.98 |
F | 5 bedroom property | £184.62 | £800.02 |
Local Housing Allowance (LHA)
Local Housing Allowance Rates
The LHA rate used in the Housing Benefit claim will depend on the size of the claimant's household.
One bedroom is allowed for:
- Each single adult or each adult couple;
- Any two children under 10;
- Any two children of the same sex under 16;
- Any other child
To work out how many bedrooms your are allowed and to check your LHA rate.
Current LHA weekly rates
Please see below, LHA rates for February 2011.
| Property Size | Black Country Area | Birmingham Area |
| Shared Accomodation(or under 25 rate*) | £60.00 | £60.00 |
| 1 Bedroom | £91.15 | £103.85 |
| 2 Bedrooms | £109.62 | £126.92 |
| 3 Bedrooms | £126.92 | £137.31 |
| 4 Bedrooms | £160.38 | £184.62 |
| 5 Bedrooms | £184.62 | £224.43 |
The LHA rate may not be the amount of Housing Benefit paid as Housing Benefit is means tested and individual circumstances will determine entitlement.
Category | Type of property | Weekly Amount from 1 FEB 2011 | Monthly Amount from 1 FEB 2011 |
A | 1 room with shared living room and: a) shared kitchen, toilet and bathroom or b) exclusive use of kitchen/kitchen facilities or c) exclusive use of bathroom and toilet with shared kitchen | £60.00 | £260.00 |
B | 1 bedroom property | £91.15 | £394.98 |
C | 2 bedroom property | £109.62 | £475.02 |
D | 3 bedroom property | £126.92 | £549.99 |
E | 4 bedroom property | £160.38 | £694.98 |
F | 5 bedroom property | £184.62 | £800.02 |
