Reduction in housing benefit

[josephine35]

Hi, Im new here and hoping someone can give me some help and advice please.

 

Ive been separated from my husband for over a year. Two weeks ago I moved house and live with my 7 year old daughter. I was told yesterday that my housing benefit will be £150 per month less than what I was receiving at my old house yet my incoming finances haven't changed at all.

 

All the council said to me is that it is the changes in the government's rules due to my change of circumstances i.e. change of address, even though I was receiving housing benefit on a two bed place at my old address and I have moved into a two bed place at my new address!!

 

I am really going to struggle with this cut in my housing benefit and will have to find £300 per month to put towards my rent although I am only on part time wages. The council said I can write in and ask about a discretionary housing payment. Has anybody had any luck with that?

 

I would really appreciate some feedback at this worrying time. Thank you.

[Marianne7]

Hello Josephine

 

I once got a discretionary payment of £7.50 per week for 3 months, as I had to live in this house, close to my 90+ year old father, as I don't drive and I was his main carer. It helped a little, as like you I had to top up my rent. I think I could've kept applying every three months, but my council made it plain the funds were very limited and I got the feeling I wouldn't get it as a regular thing.

[worried33]

I think what you need to be clear on is the exact reason its been reduced. The only change of law I am aware off that reduces housing benefit this year is for single people between 25 and 35 years old living in one bed flats. Since you have a child I assume that wouldnt affect you.

 

My gut guess is that at your old address you was on housing benefit (the old system) and at your new address you now on LHA, LHA is usually less generous and that could be the reason that the rent set for LHA is much lower than what you consider a reasonable rent. So really you need to find 2 things out. What they consider to be a reasonable rent and if they consider your income excessive, both things should be on the letter. If they think your rent is too high then try to find the reason. I hope my advice is helpful to you.

[Nystagmite]

The only change of law I am aware off that reduces housing benefit this year is for single people between 25 and 35 years old living in one bed flats. Since you have a child I assume that wouldnt affect you.

 

It won't. The change only affects single people with no children. Regardless of the OP's age, she's entitled to 2 bedrooms; as she has a child.

 

You can find out the LHA rate on your local council's website.

[id6052]

LHA rates have also reduced from 50 percentile to 30 percentile.

 

This means that: -

 

• the old rate of LHA was based upon a level that half the properties in the area would be affordable to those in receipt of HB
  
• the new rate of LHA is based upon a level where less than a third of properties in the area are affordable to those in receipt of HB
  

[id6052]

Councils have been given additional funds to make Discretionary Housing Payments. However there is a limit on the amount they can spend and most Councils will use it to provide short term assistance to claimants to allow them time to find more affordable accommodation.

[feelingsad]

As this seems to affect only people with new claims or a change in circumstance, this is going to catch people like Josephine out totally unwittingly. It's pants.

[id6052]

As this seems to affect only people with new claims or a change in circumstance, this is going to catch people like Josephine out totally unwittingly. It's pants.

 

The change in calculation method affects people immediately when they make new claim, change address or household address.

 

However it will affect all other existing LHA claimants when their LHA rate changes in 2012.

[feelingsad]

Oh ok. Expect more posts about that here when people are affected by that then.

[Nystagmite]

Isn't there something about a 12 month review?

[josephine35]

Thank you to everybody for taking the time to reply to me. Yes, worried 33 you are right, i have been put on LHA now but was on housing benefit at my old address. I haven't had a letter from the council yet but will ask them those two questions you suggested.

Nystagmite, I will have a look at the LHA rates on the council website tonight. Caducea, Im amazed you only got £7.50 DHP per week! I know anything is a help but can't believe how little the extra amount is. Its kind of putting me off applying for it but know I have no choice but to.

 

It feels so unfair to me. I was so pleased to finally be independent but now i have been put on LHA I really don't think I can afford to stay here. Does anybody know if I can appeal? Josephine x

[worried33]

Yeah I am shocked how low that discretionary payment is as I assumed when rewarded it filled the gap or at least most of the gap, but maybe his gap was only a small one he didnt mention that.

[josephine35]

I've just been on the local council's website and all it said was the LHA for a 2 bedroom place is £290. Didn't specify if that was per week, month or year...not particularly forthcoming in information!! I had a further look around and noticed a link that said i can apply for housing benefit on top of the LHA so that is a route I think i will take. Again, thanks everyone for help and advice, Josephine x

[Nystagmite]

It should tell you on their website how much they'll pay (maximum) this week and this month.

[id6052]

I've just been on the local council's website and all it said was the LHA for a 2 bedroom place is £290. Didn't specify if that was per week, month or year...not particularly forthcoming in information!! I had a further look around and noticed a link that said i can apply for housing benefit on top of the LHA so that is a route I think i will take. Again, thanks everyone for help and advice, Josephine x

 

LHA rates are normally provided as weekly figures. Though a lot of Councils also provide monthly equivalent. The £290 figure is the national cap being introduced. This is not your local council's LHA rate. You can find LHA rates for your area at https://lha-direct.voa.gov.uk/search.aspx

 

If you are unable to work it out, please post the name of local council, and I will look it up for you.

 

LHA is not separate from HB. It is part of the method for calculating the maximum HB for private tenants.

 

The Valuation Office carry out analysis of private rental markets. Based upon the analysis they set LHA rates each month. These rates are the maximum amount of HB that private tenants can receive, however the amount of HB would be reduced if a person has other adults living with them or if their income is higher than the level the government says they need to live on.

 

You cannot apply for HB on top of the LHA.

 

If your HB is less than your rental charge, you can apply for additional financial assistance by way of a Discretionary Housing Payment. However as these payments are discretionary, you may or may not get one. Council's have a discretion as to whether to pay, how much to pay and how long to pay

Edited March 31, 2012 by id6052