Changes coming into force from April 2011.
The Government has introduced rules which make the changes listed below – the intention is to save £2 billion. They have used their media to push the lie that Housing Benefit is a disincentive to finding work. London figures show that 87% of claimants of Housing Benefit are in work! The Housing Benefit costs are in reality a reflection of just how feather-bedded landlords are and how miserable wages are for millions of workers.
Maximum size of a dwelling which can be paid for by housing benefit capped at 4 bedrooms, LHA rates payable for each category of property capped to the following wherever the property is situated in the country:
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- One bedroom in shared house £250
- One bed self contained £250
- Two bed £290
- Three bed £340
- Four bed £400
- The claimant could get less HB than this if s/he has income or capital to take into account. If claimant was getting Housing Benefit before 7/4/08, the LHA rates only apply if there is a change of address, or there is a break in the claim.
- Removal of provision which allows a claimant to retain up to £15 where they rent a property below the LHA rate.
- Reduction of the LHA rate from the median of rents in each BRMA to the 30th percentile. (They allow for an additional room to be included in the size criteria for a non-resident carer of a disabled claimant)
- The rules allow for the rate of HB to be protected for up to 9 months for existing claimants.
From January 2012, the shared accommodation rate goes from being applicable to under 25’s to under 35’s. If a claimant is planning on moving to a new address, he/she can claim up to 13 weeks before the move.
