Will this affect me?
Yes, if you are renting a property from a private landlord and receiving housing benefit and you made your claim for your current address on or after 7 April 2008.
What is changing and when?
From April 2011 the government is making changes to housing benefit (Local Housing Allowance) for tenants renting from a landlord in the private sector.
1. The maximum £15 weekly housing benefit excess that some people can get will end. This means you will not be able to get more money from housing benefit than the amount you pay in rent.
2. There will be maximum rate caps, so that Local Housing Allowance weekly rates in any area cannot be more than:
£250 for a one bedroom property per week
£290 for a two bedroom property per week
£340 for a three bedroom property per week
£400 for a four bedroom property per week
3. There will no longer be a five bedroom Local Housing Allowance rate. The maximum level is for a four bedroom property.
4. The government will reduce Local Housing Allowance rates to a lower amount based on the 30th percentile of market rents in the area. At present LHA rates are based on the average of rents (50th percentile).
When will this affect me?
If you are making a new housing benefit claim (Local Housing Allowance) or moving home, the changes will affect you from 1 April 2011.
If you are already claiming housing benefit, you will normally have more time before your rate changes.
If your circumstances don’t change, the £15 excess will be withdrawn from your claim anniversary date;.
For other changes, you will have nine months based on your current LHA rate after your housing benefit is next assessed (LHA anniversary review) on or after 1 April 2011.
The changes may affect you sooner (but not before April 2011) if:
you are getting housing benefit and move home
your household changes, such as someone leaves or comes to live with you
Help for disabled people
An additional bedroom will be allowed from April 2011 within the LHA size criteria where a disabled person, or someone with a long term health condition, has a proven need for overnight care and it is provided by a non-resident carer.