Changes to housing benefit

1 April 2013

Maximum benefit cap introduced. 

The total income from benefits will be restricted for out of work households; single person will be restricted to £350 a week, couple/lone parent/family to £500 a week. All pensioners and working age households in receipt of the following benefits will be exempt from the cap:

• Working Tax Credit
• Disability Living Allowance
• Attendance Allowance
• ESA support component
• War Widows and Widowers pension.

All households due to be affected by the benefit cap will be written to by the Department of Work and Pensions (DWP).  For more information please click here to view a factsheet published by the Department of Work and Pensions.

Housing Benefit limited where property is under-occupied.  Working age households in the social rented sector (Council and Housing Association) will have Housing Benefit reduced if they have one or more spare rooms.  The reduction is expected to be 14% of Housing Benefit for one spare room and 25% for two or more.

• For more information on Welfare Reform, please click here to be redirected to our dedicated webpage.

1 April 2012

Local Housing Allowance (LHA) rates fixed at April 2012 levels.  LHA rates are currently set by the Valuation Office on a monthly basis.  In 2012/13 this will change to an annual rate, set in April.  This will potentially reduce Housing Benefit entitlement for those claims due to be reviewed later in the year, as eligible housing benefit will not reflect increases to market rents since April 2012. 

1 January 2012

From 1 January 2012, all single people under the age of 35 will have their maximum rate of benefit restricted to the rate for a room in a shared house. This applies whether the property they are living in is shared or self-contained.

Childless couples under 35 will receive the 1 bedroom rate if occupying a self-contained property and the shared rate if occupying a shared property.

This rule does not apply if you have children or other people living in your household.

When will this apply? 

• If you make a new claim from 1 January 2012, this rule will apply from the start of your claim.
• If you have an existing claim and move address after 31 December 2011, the rule will apply from the date you move into your new address.
• If you have an existing claim and do not move address, this rule will apply from the next anniversary of your claim.
• If you have been granted transitional protection on an existing claim, this rule will not apply until that protection ends.

For further information please read guidance notes from the Department of Work and Pensions.

April 2011 Changes

From April 2011 the Government made changes to Housing Benefit, for tenants renting from a landlord in the private sector.

Will this affect me?

Yes, if you are renting a property from a private landlord and receiving Housing Benefit and you made your claim for your current address on or after 7 April 2008. You will also be affected if you are renting a property from a private landlord and you move on or after 1 April 2011.

What has changed?

• The maximum £15 weekly Housing Benefit excess that some people received has now ended. This means you will not be able to get more money from Housing Benefit than the amount you pay in rent.
• There are maximum rate caps, so that Local Housing Allowance (LHA) weekly rates in any area cannot be more than £250 for one bedroom, £290 for two bedrooms, £340 for three bedrooms and £400.00 for four bedrooms. Please note Harrow rates are lower so you will be subject to the local rates.
• There is no longer a five bedroom Local Housing Allowance rate. The maximum level is for a four bedroom property.
• The Government has reduced LHA rates to a lower amount, so that about 3 in 10 properties (also known as the 30th percentile) for rent in your area should be affordable to people on Housing Benefit. At the moment about 5 in 10 properties in your area are affordable to people on Housing Benefit. For further information, please visit the LHA Direct website.

Other changes that are likely to affect your entitlement

Other people living with you

If you have a non dependant living with you, for example, an adult son or daughter, a charge is applied to your housing benefit and council tax benefit called a non dependant deduction. These deductions increased from April 2011.

Help for disabled people

Disabled people now receive help towards the cost of an extra bedroom if they need an overnight carer.