For April 2011 for all new housing benefit and council tax benefit claims the Government plans to:
reduced 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. (If your landlord has set your rent at Local Housing Allowance level, you will see a drop after a transitional period of protection). The Valuation Office web site has published an indication of the new rates and you can view this here.
ended the maximum £15 weekly housing benefit excess that some customers can receive under the local housing allowance arrangements
remove the five bedroom Local Housing Allowance rate so that the maximum level is for a four bedroom property
introduce absolute caps so 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 existing customers there will be transitional protection of up to nine months following the claim anniversary date (apart from the maximum £15 excess which will end immediately on the anniversary date) This transitional protection means that many existing customers will not be affected until January 2012.
Protection will stop if:
- you move
- there is a change in household resulting in being entitled to a smaller category of dwelling (there are some exceptions).
The Government also intends to 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.
Please note: the non dependant charge that is applied to your housing benefit and council tax benefit for friends and family that live with you will increase from April 2011. An indication of the new charges can be found here.
Southampton City Council
