Changes to Housing Benefit Alanna Sokolski Housing Options Service

Changes to Housing Benefit – what next?  Summary of changes so far  How changes will affect Housing Benefit/Local Housing Allowance claimants  What can we do??

New Claimants – April 2011  Restriction to 4 bedroom rate  Financial limit for each property size (cap)  Change to size criteria (non-resident carer)  Increases in non-dependent deductions (April 2011 – March 2014)  Introduction of 30 th percentile

New and existing Claimants – January 2012 Under 35s - Extension of Shared Accommodation Rate to single claimants living alone up to the age of 35 (with limited exemptions). Approx 300 single people claiming Housing Benefit in NPT likely to be affected. These claimants will have their Housing Benefit reduced from around £80.00 per week to £46.15 per week.

Existing Claimants  Continue at current rate of benefit until claim reviewed  ‘Excess payments’ removed at date of review  Transitional Protection (up to 9 months)  January 2012 – changes being felt

April 2011 Upper financial limit  £250 p/w for 1 bed property  £290 p/w for 2 bed property  £340 p/w for 3 bed property  £400 p/w for 4 + bed property Based upon current LHA levels – this is not likely to impact NPT. These rates will be up rated annually in line with September CPI figures.

Non-dependent deductions – Housing Benefit Non-dependent incomeApr 2010 Apr 2011% increase Under 25 & on IS/JSA (IB) or assessment phase ESA (IR) Nil N/A Main phase ESA (IR)£7.40£ Aged 25 or over & on IS/JSA (IB)£7.40£ Aged 18 or over & not in remunerative work£7.40£ Gross income less than £ or works less than 16 hours per week £7.40£ Gross income between £ £178.00£17.00£ Gross income between £ £231.00£23.35£ Gross income between £ £306.00£38.20£ Gross income between £ £382.00£43.50£ Gross income more than £382.00£47.75£

Non-dependent deductions – Council Tax Benefit Non-dependent incomeApr 2010Apr 2011% increase Age 25 or over and on ESA (IR), IS or JSA (IB) Nil N/A Age 18 and over and not in remunerative work £2.30£ Gross income less than £120.00£2.30£ Gross income less than £178.00£2.30£ Gross income between £ £306.00£4.60£ Gross income between £ £382.00£5.80£ Gross income more than £382.00£6.95£

How will this impact on Private Rented Sector?  Reduced availability to Housing Benefit claimants (from 53% to 32%)  Increased demand on Social Housing  Private tenants may move to cheaper, poorer quality accommodation  More households in temporary accommodation  Increased rent arrears  Increased homelessness  Empty properties

How will this impact on Private Rented Sector? Discretionary Housing Payments  Fund will be increased (nationwide) by: £10 million a year (£30 million) £40 million a year (£60 million) Non-resident carers – claimants may be entitled to a second bedroom.

Mitigating the changes  Direct to landlord payments – to secure or safeguard a tenancy  Raise awareness for claimants – so they can prepare  Access Discretionary Housing Payments  Broker – source suitable accommodation for under 35s