The Government is planning to change the Local Housing Allowance rules from April 2011. At present we cannot give you specific advice as to how you might be affected but the information below and on the LHA (Local Housing Allowance)FAQs page is based on the announcements made by the Government. Advice about housing benefit and local housing allowance can also be found on the Shelter website.
The changes
From 1 April 2011 the Government plans to:
- Introduce caps that Local Housing Allowance weekly rates cannot exceed any area
- Remove the five bedroom Local Housing Allowance rate so that the maximum level is for a four bedroom property
- Make a change to help disabled people who have a carer who stays overnight but who doesn’t normally live with them. The change means that your Housing Benefit will take into account the cost of an additional bedroom providing you rent a property, which has a bedroom for your carer
- Reduce all Local Housing Allowance rates so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than every 5 in 10 properties as now
- End the maximum £15 weekly Housing Benefit excess that some customers can receive under the Local Housing Allowance arrangements
- The questions and answers below are intended to explain in more detail how the changes are likely to effect Housing Benefit entitlement