Changes to housing benefit from April 2011

Local housing allowance (LHA) changes from April 2012

From April 2012, the government froze local housing allowance rates for the next 12 months. The rates will remain static and all claims will be based on the rates set in April 2012.

The government previously announced changes to housing benefit from April 2011.

What changed?

From April 2011 the government made changes to housing benefit, for tenants renting from a landlord in the private sector.

Will this affect me?

Yes, if you are renting a property from a private landlord and receiving housing benefit which is based on Local housing allowance.

When did it changing?

From 1 April 2011:

• The excess of up to £15 per week housing benefit that some people currently get will end. This means you will not be able to get more money from housing benefit than the amount you pay in rent.
• There will be maximum local housing allowance rate caps, but these caps will probably only affect you if you live in London.
• There will no longer be a five-bedroom local housing allowance rate. The maximum local housing allowance rate will be for a four-bedroom property.
• Local housing allowance rates will reduce to a lower amount, so that about three in ten properties for rent in your area should be affordable to people on housing benefit. At the moment about five in ten properties in your area are affordable to people on housing benefit.

How will this affect me? 

It is possible that the amount of housing benefit you receive to pay your rent could go down. If your housing benefit is paid directly to your landlord, the amount your landlord gets could go down.

If you are getting or thinking of claiming housing benefit, you need to consider these changes before you renew or make a new tenancy agreement with a private landlord.

When will this affect me?

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 claiming housing benefit:

You will normally have more time before your rate changes, but only if your circumstances don't change:

• If you receive up to £15 excess this will stop from your next assessment date. For example, if your next assessment is due in June 2011 the excess will stop from June 2011.
• Your current local housing allowance rate will continue for nine months after we next assess your housing benefit on or after 1 April 2011. For example, if your next assessment is due in May 2011 the reduction in local housing allowance levels will not affect you until February 2012.

However, the changes may affect you sooner if:

You are getting housing benefit and move home. Or your household changes, such as someone leaves or comes to live with you.

When will my claim next be assessed?

You can work this out from the date you made your original claim for housing benefit, or from the date we last assessed your housing benefit amount.

For example, if you first made your claim for housing benefit on 5 September 2010, your next assessment date will be 5 September 2011.

Is there any other help available to assist me with my housing costs?

The council receives some funding from the government to provide further financial assistance to claimants with their housing costs where it is considered to be appropriate. This is known as discretionary housing payments.

Discretionary housing payments can be made where there is entitlement to housing and/or council tax benefit and there is a shortfall in the amount of rent and/or council tax that you pay and the amount of housing and/or council tax benefit you receive.

Each request for a discretionary housing payment is considered on a case-by-case basis and you will need to provide full details of your circumstances.

However, it should be noted that the amount of funding available is cash limited and will not make up the full losses resulting from these changes. Most discretionary housing payment awards are made only for a short period of time to allow you time to review your circumstances.

Where to go for more information

Salford Welfare Rights Service
Advice, support and representation on benefits and tax credits.
Telephone Advice Line: 0800 345 7375

Salford Citizens Advice Bureau (CAB)
Provides a wide range of advice. Based in Pendleton, Eccles, Swinton, Irlam and Walkden. For addresses look in the phone book, Yellow Pages or visit their website.
Telephone: 0844 826 9695

Salford Housing Options
Advice and support with immediate housing problems or future housing needs.
Telephone: 0161 793 2020
Text: 07966 316 206

Shelter
Confidential housing, welfare benefits and debt advice through a network of advice services.
Telephone Advice Helpline: 0808 800 4444
Available from 8.00am to 8.00pm from Monday to Friday and 8.00am to 5.00pm on Saturday to Sunday

This page was last updated on 15 May 2012