Local Housing Allowance from April 2011

• Limiting the maximum Local Housing Allowance to the four bedroom rate
• Reducing the Local Housing Allowance rates
• The introduction of upper limits (caps) on LHA
• People who have a carer staying overnight

Limiting the Local Housing Allowance to the four bedroom rate.

Since 1 April 2011, LHA rates are capped at the four room rate. The maximum anyone will receive is the four room rate. This means that no one can receive an LHA rate for more than four rooms.

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Reducing the Local Housing Allowance rates

Housing Benefit (LHA) is paid using LHA rates provided by the Valuation Office Agency. Since 1 April 2011 LHA rates are worked out using a 30% mark which means only three out of 10 properties in the area will be affordable to people receiving benefit.

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The introduction of upper limits ("caps") on LHA

Since 1 April 2011, the government capped the maximum amount of LHA that can be used to calculate a claim.

The maximum rates we can pay are:

These amounts are the maximum any claimant can get.

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People who have a carer staying overnight

Some people who have a carer who does not live with them permanently may be entitled to an extra room (subject to specific rules) if the property has an extra bedroom for the carer.

Only one extra room is allowed for a claim and the maximum four bedroom rate cannot be exceeded.

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Transitional Protection

Some claimants may qualify for transitional protection for up to a maximum of 9 months. - However if there is a change that reduces the number of rooms the claimant is entitled to, protection no longer applies and the new rate will become payable. No one can qualify for protection after the end of March 2012 and protection will end for all claims by the end of December 2012.