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Changes to Housing Benefit

Changes to Housing Benefit . Alanna Sokolski Housing Options Service. Changes to Housing Benefit – what next?. Summary of changes so far How changes will affect Housing Benefit/Local Housing Allowance claimants What can we do??. New Claimants – April 2011. Restriction to 4 bedroom rate

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Changes to Housing Benefit

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  1. Changes to Housing Benefit Alanna Sokolski Housing Options Service

  2. Changes to Housing Benefit – what next? • Summary of changes so far • How changes will affect Housing Benefit/Local Housing Allowance claimants • What can we do??

  3. New Claimants – April 2011 • Restriction to 4 bedroom rate • Financial limit for each property size (cap) • Change to size criteria (non-resident carer) • Increases in non-dependent deductions (April 2011 – March 2014) • Introduction of 30th percentile

  4. New and existing Claimants – January 2012 Under 35s - Extension of Shared Accommodation Rate to single claimants living alone up to the age of 35 (with limited exemptions). Approx 300 single people claiming Housing Benefit in NPT likely to be affected. These claimants will have their Housing Benefit reduced from around £80.00 per week to £46.15 per week.

  5. Existing Claimants • Continue at current rate of benefit until claim reviewed • ‘Excess payments’ removed at date of review • Transitional Protection (up to 9 months) • January 2012 – changes being felt

  6. April 2011Upper financial limit • £250 p/w for 1 bed property • £290 p/w for 2 bed property • £340 p/w for 3 bed property • £400 p/w for 4 + bed property Based upon current LHA levels – this is not likely to impact NPT. These rates will be up rated annually in line with September CPI figures.

  7. Non-dependent deductions –Housing Benefit

  8. Non-dependent deductions – Council Tax Benefit

  9. How will this impact on Private Rented Sector? • Reduced availability to Housing Benefit claimants (from 53% to 32%) • Increased demand on Social Housing • Private tenants may move to cheaper, poorer quality accommodation • More households in temporary accommodation • Increased rent arrears • Increased homelessness • Empty properties

  10. How will this impact on Private Rented Sector? Discretionary Housing Payments • Fund will be increased (nationwide) by: • 2011 - £10 million a year (£30 million) • 2012 - £40 million a year (£60 million) Non-resident carers – claimants may be entitled to a second bedroom.

  11. Mitigating the changes • Direct to landlord payments – to secure or safeguard a tenancy • Raise awareness for claimants – so they can prepare • Access Discretionary Housing Payments • Broker – source suitable accommodation for under 35s

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