Changes to Housing Benefit

Stratford-on-Avon District Council is advising residents that government changes to housing benefit entitlement come into effect on Friday, April 1, 2011.

The adjustments were announced as part of the government's emergency budget measures and comprehensive spending review.  They will reduce the maximum amount of housing benefit that can be paid to tenants renting from a private landlord who are having their claims assessed under the Local Housing Allowance (LHA) scheme.

Most private tenants have their claim assessed under LHA rules, but tenants of housing associations are not affected.

The changes will apply immediately to all housing benefit claims that are received from tenants renting from a private landlord whose entitlement starts on or after April 1, 2011.

People already receiving housing benefit on March 31, 2011, will not have their benefit reduced straight away.  It will be reduced from a later date to allow time to find cheaper accommodation, or renegotiate the rent with their landlord.

Dave Webb, the District Council's Head of Business, Housing and Revenues, said:  “We have written to everyone who is currently receiving housing benefit who will be affected to explain the changes. We also urge anyone currently receiving housing benefit who is moving home and who will be renting from a private landlord to contact our Benefit Team for advice on how the changes will affect them.

“The changes are being introduced by central government and our role is just to help inform people of the changes to help to ease the transition.  If anyone has any queries, they should contact us."

• The changes in summary are:Currently housing benefit customers who live in a property where the rent is lower than the LHA rate can keep up to £15 of the difference. This excess allowance is being abolished from 1 April, 2011. Those entitled to housing benefit on 31 March, 2011, will lose this excess payment on the anniversary of their claim.

•  LHA rates are currently based on the median rental charge for an area, which means around five out of 10 properties are affordable for housing benefit customers. LHA rates will reduce from 1 April, 2011, which will mean around three in 10 properties will be affordable. This means that LHA rates will only cover cheaper rents. Those already entitled to Housing Benefit on 31 March, 2011, will not normally see a reduction until nine months after the anniversary of their claim. In most cases this will mean the reduction will take place in January 2012 at the earliest. Anyone wanting to remain in a more expensive property after their protected period ends will have to pay the difference themselves.

• The five bedroom LHA rate will no longer exist after 1 April 2011. The maximum LHA rate will be for a four bedroom. Again there is protection for those currently on a five bed LHA rate.

The protection from the changes will end for current customers if they move address or become entitled to a lower LHA rate.

Government is providing limited extra funding for councils to help customers in exceptional circumstances to deal with these changes.

For further information please visit the District Council's website: http://www.stratford.gov.uk/advice/LHAchanges.cfm or call the District Council on 01789 260991.

Housing and Council Tax Benefit is subject to eligibility criteria.