Don’t wait until it’s too late: find out now if Housing Benefit changes will affect you

Home > News and events > Features

Hundreds of people across Renfrewshire are being urged to start preparing now for changes that will cut the amount of Housing Benefit they will receive.

Last year the UK government announced changes to Rent Allowance and Local Housing Allowance (LHA) which will affect the amount of Housing Benefit awarded to people who rent from private landlords.

Around 1500 residents across the area will find themselves receiving less money when these changes start to come into effect from January 2012.

Who will be affected?

• Tenants aged 25 to 34 living on their own (no partner, children or non dependants)

Housing Benefit will be amended from the rate that is currently paid for a one bedroom property to the rate of Housing Benefit paid for a studio, bedsit or shared accommodation.

Early indications show that this will mean a reduction from the current rate of Housing Benefit paid at around £80.77 to the new rate of around £63.23. This means that if you are affected you will be required to pay the shortfall of £17.54 per week. (these are the figures as at October 2011, but are subject to change on a monthly basis).

• Claimants living in 5, 4, 3 or 1 bedroom(s) properties or a studio, bedsit or shared accommodation

Although this change was effective in April 2011, transitional protection has meant that the Local Housing Allowance (LHA) was paid at the original LHA rate for a period of nine months after the Anniversary Date (review of LHA rate). The transitional protection period will start to run out for some tenants from 1 January 2012, with all transitional protection ending by 1 January 2013.

This means that Housing Benefit will decrease for most tenants between January 2012 and December 2012. Renfrewshire Council's Benefit Service has looked at the extent of decreases for each LHA category using current LHA rates for October 2011.

This indicates the following changes:

Current LHA Rate	October LHA Rate	Weekly Decrease
5 Bedroom = £253.85	5 Bedroom = £183.46*	£70.39
4 Bedroom = £196.15	4 Bedroom = £183.46	£12.69
3 Bedroom = £139.62	3 Bedroom = £123.00	£16.62
2 Bedroom = £103.85	2 Bedroom = £103.85	NIL
1 Bedroom = £84.23	1 Bedroom = £80.77	£3.46
Shared Accommodation = £69.23	Shared Accommodation = £63.23	£6.00

*5 room rate withdrawn

With the exception of the amount payable for those who qualify for the two bedroom LHA rate, there will be a reduction in the amount of Housing Benefit that is currently paid. This means that if you are affected you will be required to pay the shortfall.

If you are affected by these changes what can you do?

These changes will come into effect soon so now is the time to prepare.

If you will be unable to make up the shortfall, you should take action now by:

• speaking to your landlord to discuss how these changes will affect your ability to pay your rent
• negotiating with your landlord to reduce rent so that your new benefit award covers some or all of the shortfall, or
• as a last resort actively look for cheaper affordable accommodation.

Click here for more information about managing your money.