Since 1996, Housing Benefit has been restricted for people who are under the age of 25. From 1st January 2012, the Government is extending this restriction so that it applies to claimants who are under the age of 35, instead. The change was announced as part of the Government’s Comprehensive Spending Review in October 2011 and is being introduced to reduce the cost of Housing Benefit nationally. The change means that the amount of Housing Benefit we pay out to customers aged between 25 to 34 years, may reduce.
The Restriction
The change means that people aged between 25-34 years who live alone, must have their Housing Benefit restricted in line with current rent levels for “shared” accommodation, like a bedsit. This applies even if they live in bigger or more expensive “self-contained” accommodation, like a one bedroom flat.
The current rent level for shared accommodation in the Harrogate area is set by the Valuation Office Agency. You can view details of current rent levels at
published rates.
Who will be affected?
The restriction will apply to:
- Single people, living alone, who are aged below 35
- Who live in private rented “self-contained” accommodation
It will not apply to tenants who live in accommodation provided by a Housing Association or by the Council and it will not apply to tenants who live in other types of “exempt” accommodation such as caravans, hostels or some supported accommodation.
Exemptions
You may be exempt from the restriction if:
- you are subject to Multi Agency Protection Arrangements (MAPPA)
or
- you have previously lived for at least 3 months in hostel accommodation because you were homeless and during this period you received support to help you resettle or rehabilitate within the community.
When will the restriction take effect?
If you are already claiming Housing Benefit, the restriction will be applied when we next carry out an annual review of the rent figure used in your Benefit calculation. If you are receiving 9 months “protection” against the general lowering of rents that was brought in from April 2011, the restriction will be applied at the end of your 9 month protection period.
If you make a new claim for Benefit or you change address on or after 1st January 2012, the restriction will apply straightaway.
Local Housing Allowance Rates will be frozen from April 2012
From April 2012 Local Housing Allowance rates will be frozen. This will end the monthly uprating of Local Housing Allowance rates and bring the system into line with the uprating of other welfare benefits.
You will move onto the frozen Local Housing Allowance rate on your claim anniversary date or earlier if you:
• Make a new claim for Local Housing Allowance; or
• Already get Local Housing Allowance and move into another privately rented property
The rates will then be set annually (from April 2013) by using the lowest of the following:
• The Consumer Price Index (CPI); or
• The 30th percentile of market rents.
What can I do?
There are a number of options you can consider if your Housing Benefit is reduced:
• talk to your landlord about the changes and see if he is prepared to negotiate a reduction in your rent.
• consider moving to another property where the rent is cheaper - if you do this, remember that it is important to find out how much the rent level for a new property would be before you sign up to a new tenancy.
• apply for a Discretionary Housing Payment to help you meet the rent shortfall. This may temporarily give you extra money on top of your normal benefit. Funds are limited and awards are usually only made for short periods. Contact us for an application form.
• If you are finding it difficult to manage paying your rent because you have other financial debts as well, the Benefits Service offer a free, confidential Debt Management Advice Service. Contact us for further details.