Changes to benefit from April 2011

From April 2011, the Government is making changes to housing benefit that are likely to result in some benefit going down.

It is possible that the amount of housing benefit you get to pay your rent could go down and you will have to make up the shortfall. This will affect you if:

• your current claim has deductions for a non dependant who lives with you
• or if you receive benefit and rent your property from a private landlord

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.

Non dependant deductions

A non dependant is someone who lives with you (not including your partner) such as an adult son or daughter.

When your benefit is calculated a deduction is made to the amount paid to you taking into account the non dependant's circumstances. These deductions are changing from 1 April 2011 and may result in less benefit being paid to you. The amount of the deduction will depend on the circumstances of the non dependant, details of which are as follows:

Non-dependant deductions from housing benefit 

	Current weekly deduction	New weekly deduction
aged 25 and over in receipt of IS and JSA(IB), in receipt of main phase ESA(IR),aged18 or over, not in paid work	£7.40	£9.40
aged 18 or over and in paid work - gross weekly income: less than £122.00	£7.40	£9.40
- gross weekly income: £122 to £179.99	£17.00	£21.55
- gross weekly income: £180 to £233.99	£23.35	£29.60
- gross weekly income: £234 to £309.99	£38.20	£48.45
- gross weekly income: £310 to £386.99	£43.50	£55.20
- gross weekly income: £387 and above	£47.75	£60.60

Non-dependant deductions from council tax benefit 

	Current weekly deduction	New weekly deduction
aged 18 or over and in paid work - gross weekly income: £387 or more	£6.95	£8.60
- gross weekly income: £310 - £386.99	£5.80	£7.20
- gross weekly income: £180 - 309.99	£4.60	£5.70
- gross weekly income: less than £180	£2.30	£2.85
- others, aged 18 or over	£2.30	£2.85

Changes to the Local Housing Allowance

From April 2011 the Government is making changes to housing benefit, for tenants renting from a landlord in the private sector. This will affect you if you are renting a property from a private landlord and receiving housing benefit and you made your claim for your current address on or after 7 April 2008.

What is changing?

From 1 April 2011 the following changes will take place:

Withdrawal of £15 per week excess

Some people currently get an extra £15 a week benefit when the rent they pay is less than the Local Housing Allowance rate. This extra payment will stop.

If you are already claiming housing benefit, and your circumstances stay the same the changes will not affect you until the anniversary of your claim* (see anniversary of your claim paragraph below).

Five bedroom Local Housing Allowance rate

There will no longer be a five bedroom Local Housing Allowance rate. The maximum level is for a four bedroom property.
If you are already claiming housing benefit, the changes will not affect you until nine months after the anniversary of your claim* (see anniversary of your claim paragraph below).

Additional Local Housing Allowance for claimants who need a live in carer

From April 2011, where a disabled person or someone with a long term health condition needs a live in carer, an additional bedroom is counted when working out the maximum amount of LHA. e.g. a disabled person with a live in carer will be entitled to LHA at the 2 bedroom rate. Before 1 April 2011 they would only have been entitled to LHA based on a 1 bedroom rate.

Reduction in Local Housing Allowance rates

The Government will reduce Local Housing Allowance rates 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.

If you are already claiming housing benefit, and your circumstances stay the same the changes will not affect you until nine months after the anniversary of your claim* (see anniversary of your claim paragraph below).

If you would like to see how this might affect you, details can be found on the Valuation Office Agency website (please see website link in external links box below).

All these changes will affect you sooner if, after 1 April 2011:

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

* When is the anniversary of your claim?

A year from when you made your current claim.

Making a new claim?

If you are making a new claim or moving home, the changes will come into effect on 1 April 2011.

If your circumstances change

Please also remember that you have a duty to tell the benefit service of changes in your circumstances which might effect your entitlement to housing and/or council tax benefit. Examples of the types of changes you should report include:

• If you or someone in your household starts work
• If you or someone in your household ceases to be entitled to income support or job seekers allowance
• If you or someone in your household has an increase or decrease in child tax or working tax credit
• If your or someone in your households earnings increase or decrease
• If the amount of rent your are charged increases or decreases

If your circumstances do change you should let the benefit service know in writing along with supporting evidence of the change. If you don't do this you might have to pay back some benefit.

If you need any more information please contact the customer service centre on 01494 421 324.