Changes to Housing Benefit

If you rent from a private landlord and receive Housing Benefit and made your claim for your current address on or after 7 April 2008, the change affects you.

The change also affects people who made a claim for their current address before 7 April 2008, but moved house after 1 April 2011.

About the changes

 

1. The maximum £15 weekly Housing Benefit excess that some people can get has ended (this means you will not be able to get more money from Housing Benefit than the amount you pay in rent).

2. Before April 2011 the maximum number of bedrooms per house allowed was five, this has been reduced to four.

3. Maximum rates will be capped (this will probably only affect people in London), 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

4. Local Housing Allowance rates have been reduced.

Before April 2011 the rates at which payments were set was based on the median value of properties in the area.

Now rates are set so 30% of rental properties in the area are less expensive and 70% more expensive.

5. Claimants (or their partners) who are disabled with a long term health condition and need overnight care provided by a non-resident carer, may get an additional bedroom rate for the carer when calculating the Local Housing Allowance rate.

You must have an extra bedroom in your home available for the carer to use before you get this help and it must not exceed 4 bedrooms.

You need to inform the Benefits Service if you have an overnight carer.

How will this affect you? 

1. It is possible that your Housing Benefit could be reduced.
2. If your Housing Benefit is paid directly to your landlord, the amount your landlord gets could go down (you need to consider these changes before you renew or make a new tenancy agreement with a private landlord).

When will the changes happen?

If you are making a new claim to Housing Benefit or moving home, the changes will affect you from 1 April 2011.

If you are already receiving Housing Benefit, you will normally have more time before your rate changes.

If your circumstances don’t change, you will have nine months based on your current rate after your Housing Benefit is next assessed on or after 1 April 2011.

For example, if your next assessment is due in June 2011 the changes will not affect you until March 2012.  But you cannot get more money in Housing Benefit than you pay in rent after your claim is assessed.

The changes may affect you sooner if: 

• You are getting Housing Benefit and move home
• Your household changes, such as someone leaves or comes to live with you
• You are awarded an extra bedroom due to the addition of an overnight carer

When will your claim next be assessed?

You can work this out from the date you made your original claim for Housing Benefit, or from the date your Housing Benefit was last assessed.

For example, if you first made your claim for Housing Benefit on 5 September 2010 your yearly review date will be 5 September 2011.

Single people under 35

The following changes came into effect on 1 January 2012. 

Housing Benefit has changed for single people aged 25 to 34 who are tenants of a private landlord.

About the changes 

The shared accommodation rate that used to apply only to single people under 25 who were tenants of private landlords now applies to people aged under 35.

If you are a single person aged 25 to 34, living on your own in self-contained accommodation, your Housing Benefit is no longer based on 'one-bedroom self-contained accommodation'.

Instead, a 'shared accommodation rate' is used (it is a lower rate and may be lower than the rent you pay).

Exceptions to the rule

The rules do not apply to you if: 

• Someone else (for example a child, elderly relative, or friend) lives with you
• You live in supported housing provided by a housing association, registered charity or voluntary organisation and get a package of care or support from your landlord (or from somebody else on behalf of your landlord)
• Your private tenancy began before January 1989
• You are severely disabled and get the middle or higher rate care component of Disability Living Allowance
• You need an extra bedroom for a carer who does not live with you but who provides you with overnight care
• You have lived in a hostel for homeless people or a hostel that provides rehabilitation and resettlement within the community for at least three months (you must have received resettlement support to help you live in the community)
• You are an ex-offender and your housing has been arranged for you through Multi Agency Public Protection Arrangements (MAPPA)

When will these changes happen?

The date that the changes affect you will depend when you make a claim for a Housing Benefit.

You claimed on or after 1 January 2012:

The 'shared accommodation rate' will be used to work out your Housing Benefit.

You claimed before April 2011:

If you are already receiving a benefit under the Local Housing Allowance (LHA) rules and you were claiming before April 2011, the new rules usually apply nine months after your first 'anniversary date' after April 2011.

For example, if you claimed in September 2010, your anniversary date is September 2011. The shared accommodation rate is used from nine months after this, so from June 2012 the shared accommodation rate is used.

You claimed between 1 April 2011 and 31 December 2011:

If you get a benefit under the Local Housing Allowance (LHA) rules and you claimed between 1 April 2011 and 31 December 2011, the new rules usually apply 12 months after you claimed.

The rules apply from your 'anniversary date' (the date that your Local Housing Allowance rate is reassessed).

For example, if you claimed benefit in July 2011, your anniversary date is in July 2012 so the shared accommodation rate is applied from July 2012.

You claimed before 7 April 2008: 

If you are already receiving a benefit and the Local Housing Allowance rules don't apply to you (this usually means you claimed before 7 April 2008) the new rules usually apply 12 months after your first annual review after April 2011.

For example, if you claimed benefit in May 2007, your first review after April 2011 was in May 2011 so the shared accommodation rate is used from May 2012.

The shared accommodation rate may be used sooner if you move or have a change in your household that means you need a different number of bedrooms.

What can you do?

Discuss your options with your landlord - they may consider reducing the rent. 

You may be eligible for Discretionary Housing Payments as a temporary form of support.