Local Housing Allowance Cap – what could it mean for you?

1. Local Housing Allowance Cap – what could it mean for you?

2. Government proposals • Government is consulting on introducing the Local Housing Allowance cap into the social rented sector. • Proposals are to introduce the Local Housing Allowance cap in April2019 • The changes will affect new and existing residents • Proposals are to limit Housing Benefit entitlement to the Local Housing Allowance rate with local authorities then administering a “top up” pot to make up the difference • Theconsultation period closes on 13th February 2017 – it’s important to respond before this date

3. Key messages • Government is proposing to change Housing Benefit for people in supported housing. It could mean some people’s benefits no longer cover the full cost of their home. • Local authorities will pay the difference via a top-up fund – but we have a few concerns about how that will work and possible changes to the way it is administered in the long term. • These are just proposals at this stage. Any changes are not due to come into effect until April 2019. As an organisation we will be responding to the consultation to find a solution. • We think it would be helpful for you to write to your MP stating your concerns about the proposals and also to respond to the consultation

4. What is the Local Housing Allowance? • Already exists in the private rented sector • A cap on the maximum amount of Housing Benefit that a household can receive. • Looks at rents in a local area for properties of the same size (number of bedrooms) • Local Housing Allowance is then set at the 30th point of the average rents • Local Housing Allowance rate is based on number of bedrooms needed as decided by policy not the number of bedrooms in a property. • In most cases a single person or a couple will be deemed as needing just one bedroom so the Local Housing Allowance rate that is applied will be theone bedroom property rate. • The Local Housing Allowance rate varies by local authority area

5. Geographical Impact North 100% of Properties Affected Based on: 2 Beds rec 1 Bed LHA 1 Beds rec 1 Bed LHA Studios rec 1 Bed LHA Total Impact 86% of Properties Affected East & West 89% of Properties Affected (97% EC, 86% RH) Midlands 98% of Properties Affected (100% EC, 98% RH) London & South East 54% of Properties Affected (92% EC, 40% RH)

6. Concerns about the LHA cap and the “top up” • How will local authorities prioritise “top up” funding? • Will local authorities, who are already under significant financial strain, be tempted to channel funding towards those who they perceive have greater support needs? • “Top up” funding could become a postcode lottery • There is a lack of recognition of the preventative nature of sheltered housing and a lack of evidence to demonstrate this • It will affect all residents not just those in receipt of Housing Benefit as we may have to review services provided to residents

7. What is Housing & Care 21 doing? • Working with other HAs to develop aco-ordinated approach and messages • Writing to all our MPs • Writing to local authorities • PR activities – speaking engagements, blogs, press • Engagement with residents to raise awareness and mobilise their support

8. What can you do? • Don’t panic – these are only proposals at this stage and any changes that are implemented won’t apply until 2019. However, we need your help to make sure the government listen to the voices of older people. You can do this by: • Writing a letter to respond to the consultation, and • Writing a letter to your local MP • Talk to other residents, your family and friends and encourage them to write as well – the more people who write, the more notice government will take. • If you wish to see the consultation document it can be found at: https://www.gov.uk/government/consultations/funding-for-supported-housing