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Budget 2010 - Update

Detailed overview of the comprehensive Housing Benefit reform plan from Budget 2010 updates to the medium-term reforms in 2013, including changes, effects, and actions going forward. Stay informed with this essential guide.

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Budget 2010 - Update

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  1. Budget 2010 - Update February 2011 Service Improvement Team Benefits Service

  2. Immediate Reform April 2011 • LHA rate to be set at 30% percentile as opposed median of rent levels for each property in each BRMA • Removal of £15 LHA excess. • Introduction of 4 bedroom LHA upper limit. • LHA rates capped at £250, £290, £340 and £400 per week for 1, 2, 3, and 4 bed rates accordingly . • Amend size criteria to include a live in carer. • DHP grant increased by £10 million. • Non Dependant deductions will start to be increased to uprated 2001 rates. • Increased ability to pay landlords direct.

  3. April 2011 – effects 30th percentile calculation • Effective for all new claims, and anniversary date plus 9 months for most existing claimants. • Reduction from 1 in 2 properties to 3 in 10 PRS available. • 6963 LHA claims affected • Average loss is £7.02 per week. • Weekly difference - illustrated in next slide.

  4. 30th Percentile ComparisonFebruary 2011

  5. April 2011 – effects Removal of £15 cap • Effective for all new claims and anniversary date, for existing claimants. • 2,893 affected • Average loss is £9.58 • LHA will still match the contractual rent – although for standard cases less ability to pay shortfall.

  6. April 2011 – affects 4 bed cap • Effective for all new claims and anniversary date, plus 9 months for most existing claimants. • 65 cases currently above 4 bed rate. • 41 cases affected by restriction. • Average weekly restriction is £81.20 per week. 1, 2, 3 and 4 bed LHA caps • No cases in Bristol affected.

  7. TransitionalProtection • For existing claimants for up to 9 months. • Will apply from 1st April 2011 when; first anniversary date arrives, or room need for the dwelling goes up and the new rate of LHA is less than the existing one. • Will not apply to existing claimants from 1st April 2011 when; there is a change of address, or room need goes down. • It will continue to the earliest of; 9 months ending, or there is a change of address, or room need goes up or down.

  8. April 2011 – affects Extra Room for Carers • Effective from 1st April 2011. • Additional room need for a carer(s) over existing LHA room need rules. • That room has been designated for that use, and • Claimant partner in receipt of DLA (care) middle or high, or Attendance Allowance, or • A specific need has been identified for that purpose. • 63 cases potentially identified. DHP grant increase • £143k to £207k.

  9. April 2011 – affects Increase of ND deductions to 2001 rates • 2073 people affected. • Charges increase from 23 – 27%. • Highest charge increases from £47.75 to £60.60 per week for HB. • Examples on next slide.

  10. Non Dependant Rates – 2011/12

  11. April 2011 – affects Increased ability to pay landlords direct • Known as the ‘bribe’ incentive to encourage the landlords to reduce rent in return for rent direct payments. • Not a return to rent direct payment on request. • Paid as long as rent direct ‘secures and maintains’ tenancy.

  12. HB/CTB Medium Term Reform April 2012 Single Room rent increased from 25 to 35. • 963 cases affected • Protection? DHP grant increased nationally from £20 to £60m Fines for those who fail to report changes - £50

  13. Medium Term Reform April 2013 • LHA rates increased by CPI and not local rental values. • Size criteria rules for working age socially rented sector housing. • HB entitlement levels will be reduced to 90% after 12 months for those receiving Job Seekers Allowance. • Beginning of Universal Credit scheme (including Housing Benefit and WTC, CTC, IS, JSA (ib) and ESA(ir)). • End of Council Tax Benefit – to be replaced by localised rebate scheme, plus 10% less funding?

  14. Medium Term Reform Other - April 2013 • Overall benefits cap of £500 per week (excluding some benefits). • A new Fraud Investigations Service will start to cover all aspects of benefit fraud (including HB/CTB).

  15. Actions going forward • Forecasting those cases affected and when. • Draft letters being prepared to send to claimants in advance of changes. • Website updated with changes from April 2011. • Benefits, Housing Solution and Private Rented Team meeting monthly. • Attending stakeholder events – landlord forums, advice agencies/worker events, BCC staff, claimant groups, etc • Leaflet to be finalised.

  16. Any Questions?

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