Home: Community: Money: Help with your rent, or council tax payments: Welfare benefit reforms

Changes to Housing Benefit, Local Housing Allowance and Council Tax Benefit

Helen Rodger - November 2011
council.benefits@kirklees.gov.uk


Introduction

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) Provides help with council tax payments.
Housing Benefit (HB) Provides help with rent payments for people who rent their home from the social sector, such as housing associations.
Local Housing Allowance (LHA) Provides help with rent payments for people who rent their home from a private landlord.

When will I be affected by the changes?

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.


What are the changes?


Change

Date of change

Type of benefit

Date existing claimants will be affected

Local Housing Allowance

Housing Benefit

Council Tax Benefit

Non dependant deductions increase April 2011 check box ticked check box ticked check box ticked Straight away
LHA rates reduce April 2011 check box ticked Up to 9 months after annual review date
5 bedroom rate removed April 2011 check box ticked Up to 9 months after annual review date
£15 top-up removed April 2011 check box ticked From annual review date
LHA rates 'capped' April 2011 check box ticked Straight away
Additional room allowance for non-resident carer April 2011 check box ticked Straight away
Shared room rate applied to 34's and under January 2012 check box ticked Depends on your circumstances

• 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.



Other changes to welfare benefits

The government has announced changes to other welfare benefits such as Child Benefit and Tax Credits which may affect your income.

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