Housing Benefit reforms - Latest Updates

How will the changes affect me?

The 4 bedroom rate will be the upper limit for Local Housing Allowance claims ,replacing the existing 5 bedroom cap

You will be affected if you were receiving Local Housing Allowance at the 5 bedroom rate before April 2011 .You will have had a letter explaining this .

If you are looking for somewhere to rent you need to know that your Housing Benefit entitlement will be based on the 4 bedroom rate even if you need 5 bedrooms . See under Local Housing Allowance rates for the current amount.

The Discretionary Housing Payment grant will be increased by £10m nationally

The £10m will be distributed among all local councils and is intended to help ease the effects of the changes. If you have difficulty meeting any shortfall in your rent now , or when your transitional protection comes to an end and your landlord refuses to reduce the rent , you can apply for a Discretionary Housing Payment . Because the fund is cash limited, each case is considered on its merits . You can download a form from the website . If you would like help filling it in, you can go to any One Stop Shop or Citizen Advice Bureau.  

Non dependant deductions will begin to be uprated with the intention that, by 2014 ,they will have been increased to the level they would have been had they been fully uprated since 2001

If you have someone who is over the age of 18 living with you, you will have been advised of the increase in the non dependant deductions when your Housing and Council Tax Benefit was recalculated to take account of the changes in state benefits and personal allowances. These deductions are intended to reflect the contribution made to the household finances by the non dependant .

Shared accommodation rate in Local Housing Allowance extended to all single claimants under 35 years old

This was introduced in January 2012 and has significant implications for single people who are under 35 years. Before the reforms, the shared accommodation rate applied to anyone under 25 living in rented property . From January 2012 it applies to all single people under the age of 35 .

Are you under 25 years old ?

If you are currently under 25 and claimed Housing Benefit before April 2011 you will have already had a letter explaining about transitional protection from the April 2011 changes. The lower shared accommodation rate will apply when your transitional protection ends.

Are you over 25 and under 35 years old ?

If you are currently between 25 and 35 years old and claimed Housing Benefit before April 2011, you would have had a letter explaining about transitional protection from the April 2011 changes. This transitional protection applies to Housing Benefit which will have been based on the 1 bedroom Local Housing Allowance rate . When the transitional protection ends, your Housing Benefit will be reassessed using the shared accommodation rate .

This means if you are single, under 35 years old and live in 1 bedroom accommodation which is self contained, your Housing Benefit will be no higher than the shared accommodation rate . See under Local Housing Allowance rates for the current amount.

If you are currently between 25 and 35 years old and claimed Housing Benefit after April 2011 and before January 2012, the shared accommodation rate will apply to you on the anniversary of your claim .

For example :-

If you made your first claim (or we last assessed the amount ) on 16.6.2011, you will be affected by the changes on 16.6.12.

You can check the current Local Housing Allowance rates . 

You should consider asking your landlord to reduce the rent . If you are unsuccessful, you may apply for Discretionary Housing Payments .

If you are single, under 35 and claim Housing Benefit after 1st January 2012 , your entitlement will be based on the shared accommodation rate straightaway.

April 2012

From April 2012 Local Housing Allowance rates will be set for 12 months and will no longer be updated monthy. 

April 2013 

Local Housing Allowance

From April 2013 Local Housing Allowance rates will be uprated based on the Consumer Price Index(CPI).

Introduction of the Benefit Cap  

From April 2013 a maximum benefit cap of £500 per week for families is to be introduced. More details to be announced.

Universal Credit

From October 2013 all new claims for out of work support will be made through Universal Credit. This means, no new claims will be accepted for Jobseeker's Allowance, Employment and Support Allowance , Income Support or Housing Benefit from that date.