The government is introducing a number of changes to welfare benefits, including the way council tax benefit, housing benefit and local housing allowance is calculated.
| Council tax benefit (CTB)
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Provides help with council tax payments.
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| Housing Benefit (HB)
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Provides help with rent payments for people who rent their home from the social sector, such as housing associations.
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| Local Housing Allowance (LHA)
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Provides help with rent payments for people who rent their home from a private landlord.
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If you're a new claimant we will use the new rules as they are introduced to calculate your claim.
If you're an existing housing benefit, local housing allowance or council tax benefit claimant, you may have a short period of time before the change affects how much benefit you receive. This period of time is called ‘transitional protection'. However, if you have a change in your circumstances which affects your claim, such as a change of address or someone moving into or out of your household, we will use the new rules to calculate your claim immediately.
A few number of claimants may be exempt from the new rules.
It's important to remember that depending on your circumstances, you may be affected by more than one change at different times over the coming years.
Change
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Date of change
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Type of benefit
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Date existing claimants will be affected
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Local Housing Allowance
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Housing Benefit
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Council Tax Benefit
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Non dependant deductions increase
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April 2011
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Straight away
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LHA rates reduce
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April 2011
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Up to 9 months after annual review date
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5 bedroom rate removed
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April 2011
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Up to 9 months after annual review date
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£15 top-up removed
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April 2011
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From annual review date
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LHA rates 'capped'
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April 2011
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Straight away
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Additional room allowance for non-resident carer
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April 2011
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Straight away
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Shared room rate applied to 34's and under
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January 2012
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Depends on your circumstances
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• Non-dependent deductions increase
If you have another adult living in your household such as a grown-up child, parent or sibling (not a partner), you will have an amount deducted from your benefit allowance.
This deduction is called a 'non-dependent deduction' and is made because the government expects this person to contribute an amount equal to the deduction towards your bills.
From April 2011 non-dependent deductions increased. The deduction increase means you'll receive less benefit.
• LHA rates reduce
This will affect all claimants renting their home from a private landlord and claiming help with their rent.
LHA rates are weekly rent levels calculated by Rent Officers who check local rent levels and calculate the rates each month. We use LHA rates to help calculate your claim. When the rates reduce, so could the amount of benefit you receive.
• 5 bedroom rate removed
LHA rates previously included a category for a property with 5 bedrooms. This has now been removed, affecting anyone living in a 5 bedroom home or larger.
• 'Top-up' removed
Claimants could previously receive up to £15 of the difference if their rent was less than the maximum LHA rate for their property. This has now been removed. This change will affect any claimants receiving a top-up.
• LHA rates 'capped'
A maximum amount for each LHA category has been set. This is known as a 'cap'. This change will mainly affect people living in more expensive areas eg. Inner London as local rent levels are lower than the maximum amount.
• Additional room allowance for non-resident carer
An additional bedroom will be allowed for a non-resident carer where a disabled person has an established need for overnight care. This means a tenant currently entitled to the 1 bed rate would become entitled to the 2 bed rate.
• Shared room rate applied to 34's and under
The shared room LHA rate will be used to calculate benefit for tenants living in a 1 bedroom property, who are aged under 34 or under and without dependant children.
The government has announced changes to other welfare benefits such as Child Benefit and Tax Credits which may affect your income.