Changes to Local Housing Allowance
On the 1st January 2012 there will be changes to the Local Housing Allowance rules which mean that people under 35 may no longer receive enough benefit to cover their full rent. A lot of people are worried about how they or a loved one may be affected by these changes.
What is Local Housing Allowance?
Local Housing Allowance is the system used to work out how much Housing Benefit someone who rents their home from a private landlord is entitled to.
The amount of housing benefit you receive will depend on:
where you live
who lives with you and therefore the type of accommodation you need (shared, 1 bedroom, 2 bedroom etc)
Depending on how much your contractual rent is each week or month, Housing Benefit via the Local Housing Allowance system may not be enough to pay all of your rent.
What are the current LHA rules about accommodation size?
The LHA rate you are entitled to is linked to the type of accommodation you need.
You can use the LHA Bedroom Calculator to work out the LHA rate applicable for your household There are some situations where you don’t need to use the calculator because your LHA rate is fixed. You have to use the ‘Shared Room Rate’ if:
• You are under 24 and single (there are some exemptions- see below)
• You are a couple and living in a shared house
• You are 25 or over and living in a shared house
How do I work out how much the Local Housing Allowance is where I live?
You can work out the LHA rate in your area for your allowed property size by using this calculator
What are the changes to the rules?
From the 1st January 2012 if you are under 35 and single with no dependents you will have to use the ‘Shared Room Rate’ to calculate the maximum amount of Housing Benefit you are entitled to. This is the case even if you don’t live in shared accommodation.
I rent my home from the local council/housing association. Does this change affect me?
No. These changes only apply to people renting from a private landlord
I receive Middle or High Rate Care Disability Living Allowance- will I be affected?
No. If you receive either the Middle or High rate Care component of Disability Living Allowance AND no one receives Carer's Allowance for caring for you, you are exempt from this rule.
I live in a 2 bedroom property because I need to have my carer stay overnight to care for me- will I be affected?
No. If you have a carer who does not usually live with you but who needs to stay with you overnight you are entitled to the 2 bedroom LHA rate
I am going to be affected by the changes. What could this mean for me?
If you are single, under 35, living alone, not entitled to Middle or High Rate Care component of Disability Living Allowance and don’t have a need for an overnight carer then your Housing Benefit claim will be re-assessed using the Shared Room Rate of the Local Housing Allowance for your area.
This is likely to mean your Housing Benefit payment will be less than your contractual rent. If you do not pay your rent in full you run the risk of falling into arrears and potentially being evicted from your home.
What can I do?
Your options will depend on your exact circumstances but you could:
• Complete a budget sheet and see if you can afford to pay the difference in rent yourself.
• Apply for Discretionary Housing Payments
• Start looking for alternative, more affordable accommodation.
• If you think you may be eligible for Middle or High Rate Care component of Disability Living Allowance and therefore exempt, make an application.
Where can I get advice?
Shelter has lots of useful information about housing on their website. They also have a helpline you can call on 0808 800 4444
You can search for local housing advisers through Community Legal Advice
Contact our advice and information service
