Advice for families affected by the changes to Housing Benefit

What’s happening?

In April this year, there will be a number of changes to Housing Benefit rules which may affect the amount of benefit you receive. The main changes to Housing Benefit that could affect you are:

• The rate of Local Housing Allowance in your area will be recalculated and set at a lower rate. This means that in every area apart from central London, at least 30% of private rental properties in your area will now be affordable at new LHA rates.

• There will be a cap on Local Housing Allowance rates: £250/week for a 1 bed property, £290/week for a 2 bed property, £340/week for a 3 bed property and £400/wk for a 4 bed property.

• There will no longer be a five bedroom Local Housing Allowance rate, the maximum rate will be for a four bedroom property.

• The £15 weekly excess will be removed. This will only affect you if the Housing Benefit you receive is more than your actual rent. Under the new rules you will not be able to keep any excess payment.

• If you are disabled or have a long-term health condition and need overnight care or if you live with someone with similar needs, you may be able to claim Housing Benefit for a private rented property which has an additional bedroom for your non-resident carer.

Who will it affect?

• If you apply for Housing Benefit after April 2011 and you are renting from a private landlord, you will be affected by the changes straight away.

• If you are already claiming Housing Benefit your current LHA rate should be protected for up to 9 months after the date your Local Authority reviews your claim. Most existing customers will see their rates change between January and December 2012.

• The £15 excess will be removed for existing customers as soon as the local authority reviews your claim.

• We are giving local authorities extra discretion to make direct payments to landlords where they agree to reduce their rent to an affordable level.

Why are these changes needed?

This year the government will pay out over £21 billion in Housing Benefit.

The cost of rental payments to private landlords, paid for through Housing Benefit, has gone up disproportionately in the last decade and the government feels it has a duty to the taxpayer to bring these costs down.

It’s also unfair that under the current system people in low paid jobs cannot afford the housing that is available to some people on Housing Benefit.

The government has set aside £190millon to help people who might be affected by these changes, such as assistance to renegotiate lower rents with landlords, advice on rental properties, or help with moving costs if LA’s decided this is the best option.

What happens if my Housing Benefit doesn’t cover my rent?

The government says they are not expecting large numbers of families to have to move.

We expect many private landlords will be prepared to reduce their rents in line with the reduced LHA rates and new caps. This is because local authorities can choose to make direct payments to landlords direct in return for reducing their rents.

In some special circumstances, you may be able to get financial help through the Discretionary Payment Fund. Local Authorities will consider this on a case by case basis.

In a small number of cases, some people may have to consider moving. If you are worried about being able to pay your rent you should contact your local authority straight away.

What if my landlord won’t reduce the rent on my current property? What help is available?

The government states that in 80% of cases, there will be a shortfall of £10 or less in your Housing Benefit rate and your private rental rate.

Discretionary Housing Payments are available to meet the shortfall between rent and benefit in some cases. Local authorities have a limited amount of money available for this and will decide where best they can make extra payments towards rent.


If you think that you are at risk of moving home you should contact your Local Authority and they will be able to advise you of your options and any support that is available.