Benefits News

Important changes to Local Housing Allowance from January 2012

If you are 25 to 34 years old and you live alone in self contained accommodation, your Housing Benefit will be restricted to a Shared Accommodation Rate if all of the following apply to you:

• You live alone in self-contained accommodation, and
• You rent from a private landlord, and
• Your LHA Rate or Rent Officer Decision is due to be reviewed on or after 1 January 2012, and
• On the date of your review you are 25-years-old or over but are under 35-years-old, and
• You do not qualify for an exemption from a Shared Accommodation

For further information, please visit our LHA pages

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Important Housing Benefit changes from April 2011

There are major changes to the Housing and Council Tax Benefit regulations from April 2011:

• Changes affecting people who have non-dependants living with them

Non-dependant deductions are increasing from April 2011.

• Changes affecting private tenants whose Housing Benefit is calculated using the Local Housing Allowance (LHA) rules

If you are a private tenant and you are claiming or intend to claim Housing Benefit, you need to be aware of the changes. Please ensure you fully understand the new rules before you negotiate or enter into a new tenancy agreement.

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Changes affecting people who have non-dependants living with them

We normally have to reduce your Housing and Council Tax Benefit for every non-dependant who lives in your home. We call this a 'non-dependant deduction'. Non-dependants are normally adult children or relatives, but they can also be friends or anyone else who lives with you.

We will not make any non-dependant deduction if you or your partner is registered blind, gets Attendance Allowance or Disability Living Allowance (care component).

The following tables are a comparison of the deductions for 2010 and the increased amounts for 2011.

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Changes from 2 November 2009

There are two major changes to the Housing Benefit and Council Tax Benefit regulations from the 2 November 2009.

• Changes involving people who receive Child Benefit
• Changes involving pensioners and their savings

Changes involving people who receive Child Benefit

From November, income from Child Benefit will be disregarded when we calculate a claim. This means:

• anyone who receives Child Benefit and currently receives Housing Benefit or Council Tax Benefit may be entitled to more Housing Benefit or Council Tax Benefit from November
• anyone who receives Child Benefit and has been refused Housing Benefit or Council Tax Benefit because their income is too high may now be entitled to Housing Benefit or Council Tax Benefit from November.

Any changes to existing claims will happen automatically on our system.

If you receive Child Benefit and you have been refused Housing Benefit or Council Tax Benefit because your income is too high, you should use our online benefits calculator to see if you may now be entitled.

If you are entitled, you should make another application by downloading one of our Housing and Council Tax Benefit application forms from the downloadable forms page or visiting one of our Customer Service Centres. Alternatively you can call our Customer Service Call Centre on 020 8489 1000.

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Changes involving pensioners and their savings

From 2 November 2009, the lower capital threshold for people who have reached the qualifying age for State Pension Credit will increase from £6,000 to £10,000. This means that any pensioner who receives benefit is now allowed £10,000 of capital before we start adding tariff income.

Tariff income is income derived from capital. Tariff income is added to a claimant’s income at a rate of £1 for every £500 capital they have over £6,000. Savings below £6,000 are ignored. This lower limit will increase to £10,000 from 2 November 2009 so capital under £10,000 will be disregarded from then.

Some examples of how this may affect you are:

• Example 1:
  • Before 2 November 2009:
    Pensioner makes a claim for Housing Benefit and Council Tax Benefit
    Pensioner has £9,000 savings
    We add £1 tariff income for every £500 capital they have over £6,000
    Claimant has £6 per week added to their income
  • After 2 November 2009:
    Pensioner makes a claim for Housing Benefit and Council Tax Benefit
    Pensioner has £9,000 savings
    We will not add any tariff income as capital is not over £10,000
• Example 2
  • Before 2 November 2009:
    Pensioner makes a claim for Housing Benefit and Council Tax Benefit
    Pensioner has £15,000 savings
    We add £1 tariff income for every £500 capital they have over £6,000
    Claimant has £18 per week added to their income
  • After 2 November 2009:
    Pensioner makes a claim for Housing Benefit and Council Tax Benefit
    Pensioner has £15,000 savings
    We add £1 tariff income for every £500 capital they have over £10,000
    Claimant has £10 per week added to their income

Any changes to existing claims will happen automatically on our system.

If you are a pensioner with savings over £6,000 and you have been refused Housing Benefit or Council Tax Benefit because your income or savings are too high, you should use our online benefits calculator to see if you may now be entitled.

If you are entitled you should make another application by downloading one of our benefit application forms from the downloadable forms page or visiting one of our Customer Service Centres. Alternatively you can call our Customer Service Call Centre on 020 8489 1000.

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