The Government has made a number of changes to Housing Benefit from 1st April 2011. The changes affect people who rent their home from a private landlord and whose Housing Benefit is worked out using Local Housing Allowance rules. The changes are part of the Government’s wider aim to reform the Benefits system and to reduce the growing cost of the national Housing Benefit bill.
From 1st April, the following changes will take affect:
- Local Housing Allowance rates will reduce. This means that only 3 in 10 rented properties in the local area will be affordable to people who claim Housing Benefit.
- The weekly Local Housing Allowance 'top up' will stop. No one will be able to receive an amount of Housing Benefit that is higher than their rent charge.
- The 5 bedroom Local Housing Allowance rate will be removed. If you require more than 5 bedrooms, we will restrict your Local Housing Allowance rate to the 4 bedroom rate.
- Weekly Local Housing Allowance rates will be capped. In areas where rent charges are very expensive, the LHA rates will be restricted to set levels. This is unlikely to affect rents in our local area but will affect rents in the London and southern areas.
The changes mean that the amount of Housing Benefit we pay out, will reduce.
If you are already claiming Housing Benefit before 1st April 2011, the changes will not affect you straight away. If you continue to live in the same accommodation and your household circumstances stay the same, you may receive up to 9 months protection from the changes.
If you make a new claim for benefit or change address or the number of people in your household changes on or after 1st April 2011, you will be affected by the changes straight away.
This leaflet gives further details of the changes and gives advice on what to do if your Housing Benefit is reduced.