Changes to Housing Benefit from April 2011

The Local Housing Allowance (LHA) rules are changing from April 2011

From 1 April 2011, we are making major changes to the LHA arrangements, including how the LHA rates are worked out. The main changes are:

• re-setting the rates, so that about three in ten properties for rent in the area should be affordable to people on Housing Benefit, rather than five in ten properties as now
• making the four bedroom property rate the maximum payable
• no longer allowing customers to keep the difference between their rent and the LHA rate
• disabled customers who need overnight care may be able to claim for an extra room for a non-resident carer
• introducing a maximum weekly rate

The maximum weekly rates will be:

• £250 for a one bedroom property
• £290 for a two bedroom property
• £340 for a three bedroom property
• £400 for a four bedroom property

People making new claims from 1 April 2011 will be affected straight away. Existing customers will normally be affected from the anniversary of their claim. They may be affected sooner if:

• there is a change in the size of their household that affects the size of dwelling they are entitled to, or
  
• if they move.
  

Existing customers can get transitional protection for a further nine months from the date that the changes apply to them. This transitional protection means that many existing customers will not be affected until January 2012 and some will see no change until March 2012.

More information

Please see questions and answers for more details on how the changes could affect you.