The Government is changing the Local Housing Allowance/Housing Benefit rules from April 2011.
From 1 April 2011 the following changes will start happen:
The removal of the maximum £15 weekly Housing Benefit excess (sometimes called a 'top up') that some customers can receive under the Local Housing Allowance rules
The abolition of the five bedroom Local Housing Allowance rate so that the maximum level is for a four bedroom property
Introduce absolute caps so that Local Housing Allowance weekly rates in any area cannot exceed:
£250 for a one bedroom property
£290 for a two bedroom property
£340 for a three bedroom property
£400 for a four bedroom property
Make a change to help disabled people who have a carer who needs to stay overnight but who do not normally live with them. The change means that HB will take into account the cost of an additional bedroom providing you rent a property that has a bedroom for your carer.
Reduce all Local Housing Allowance rates so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than every 5 in 10 properties as now.
You do not need to do anything yet. We will be writing to individual customers starting in January 2011 to let them know how the changes may affect them.
Further information on the changes is available from Directgov.
The Frequently Asked Questions on the right of this page are intended to explain in more detail how the changes are likely to effect Housing Benefit entitlement.