LHA has obviously been a target for reform in the budget
and in my opinion about time. The following are the
major changes, some good and some bad:
Housing Allowance levels will be restricted to the
4 bedroom rate
5 bedroom rate is scrapped, so landlords with larger
properties will be affected
A new upper limit will be introduced for each property
size, with upper limits set at:
a week for a 1 bedroom property
a week for a 2 bedroom property
a week for a 3 bedroom property
a week for a 4 bedroom property or larger
affects landlords further south where the LHA rates
are a lot higher.
previously announced, the £15 weekly excess provision
currently payable within the Local Housing Allowance
rules will be removed as planned
my opinion this is a good thing, we have had experience
with parents, with 3 or 4 kids trying to cram their
families into smaller houses so that they get the £15
size criteria will be adjusted to provide for an additional
bedroom for a non-resident carer where a disabled customer
has an established need for overnight care.
Local Housing Allowance will be set at the 30th percentile
of rents in each Broad Rental Market Area, rather
than the median.
can also be confirmed that the measure announced by
the previous Government for the removal of the top
1% of rents in the market evidence for each bedroom
size in the calculation of Local Housing Allowance
rates will not now go ahead.
will take all properties as evidence when calculating
any LHA rates and rents
will be staged increases in the rates of non-dependant
deductions in the income-related benefits from April
2011. By April 2014, these increases will bring the
rates to the level they would have been had they been
fully uprated since 2001 to reflect growth in rents
and council tax.
Government announced further measures for the reform
of Housing Benefit in the longer term, these will require
Government also announced its intention to reform
the way Local Housing Allowance rates are set
in future and, from 2013/14 onwards, Local Housing
Allowance rates will be uprated on the basis of
the Consumer Prices Index, rather than on the
basis of local rents. This means it will be lower!
April 2013, Housing Benefit for working age social
rented sector customers will be restricted for
those who are occupying a larger property than
their household size and structure would warrant.
We will consult on the detailed design of this
policy. Just to stop large families moving into
When this sort of reform is mentioned I think they might
mean overhaul - Better late than never
Benefit customers who are claiming Jobseeker’s
Allowance will only receive their full Housing
Benefit award for a period of 12 months. After
that period, their benefit will be reduced by
10%, and they will continue to be ineligible for
the full out of work Housing Benefit rate until
they have left the benefit system and been in
work for a period.
has not been thought through at all. Landlords can simply
serve notice to people and evict them if they are to
get a lower housing benefit. Tenants with children should
not be affected
order to provide additional support for the hardest
cases, the sum allocated by Government for Discretionary
Housing Payments will increase by £10 million
in 2011 and by £40 million a year thereafter.
This is aimed at giving more flexibility to local authorities
to help a greater number of new and existing customers
who face a shortfall in rent because of changes to the
Housing Benefit rules.
news - but they will save much more by scrapping the
5 bedroom rate and putting an upper cap on the 1,2,3,4
bedroom rates. So its a case of saving a lot but giving
back a little
the Government also announced its intention to make
changes to the way we pay support for mortgage interest
costs and has decided to apply the Bank of England published
average mortgage rate as the standard interest rate
from October. The Bank of England published average
mortgage rate is currently 3.67%.
is quite a complicated subject, so if any one wants
further clarification please let me know.
all not that bad, could have been a lot worse. lets
hope when they eventually reform the LHA a few more
things will change
All the Best
"The secret of success
in life is for a man to be ready for his opportunity
when it comes." Benjamin Disraeli