Important Changes from 1 April 2011
From 7 April 2008 Housing Benefit for people who rent properties from Private Landlords changed and is calculated on the basis of the Local Housing Allowance (LHA) rules. The LHA rules are intended to make Housing Benefit simpler, fairer and to give claimants personal responsibility for paying their rent.
What is Local Housing Allowance?
LHA is the new way in which we work out Housing Benefit for those in the private rented sector and aims to help people on a low income, who live in property rented from a private landlord. The LHA rate that applies to you depends on the area in which you live and the number of bedrooms your household needs. It represents the maximum amount of Housing Benefit you may be entitled to. The actual amount of Housing Benefit payable depends on your income, capital and household circumstances.
Will LHA affect me?
LHA affects anyone who lives in private rented accommodation and makes a new claim for Housing Benefit after 7 April 2008.
If you claimed Housing Benefit before 7 April 2008 and you have not changed address or had a break in your claim since that date, LHA does not apply to you.
Changes to LHA from April 2011
Central Government has made significant changes to LHA from 1 April 2011. If you make a new claim after 1 April 2011, the changes will take effect from the date you apply. If you are already claiming Housing Benefit, you may have more time before some of these changes apply.
The changes
From 1 April 2011
- Removal of the up to £15 per week excess Housing Benefit that was available up to 31 March 2011. This change will affect new claims from 1 April 2011 and existing claims from their anniversary date.
- The maximum number of bedrooms taken into account when assessing LHA from 1 April 2011, is four. Central Government has set limits to ensure that Local Housing Allowance weekly rates in any area cannot exceed:
- £250 for a one bedroom property
- £290 for a two bedroom property
- £340 for a three bedroom property
- £400 for a four bedroom property
- For disabled people, LHA will take into account the cost of an additional bedroom in respect of a carer who stays overnight but who doesn’t normally live with you. To qualify for this, you must rent a property which has a bedroom for your carer.
- From 1 April 2011 in addition to the changes to LHA for a non-resident carer these changes will also apply to all private sector rented cases. This will apply when the customer or their partner has an established requirement for overnight care that is provided by someone outside the household and the customer or partner lives in a property with an additional bedroom used for this purpose.
Frequently Asked Questions