Monday, May 21, 2012

Local Housing Allowance
  
       


Numerous changes are taking place to the way Local Housing Allowance (LHA) is assessed for claimants in the private rented sector. Changes from April 2011, January 2012 and further changes due from April 2012 and April 2013 all mean less Housing Benefit (HB) will be paid. For more information on these changes please click on the links above or see the menu on the left.

In addition these changes reduce the amount of rented housing available in the private sector where the full level of rent will be used when assessing HB entitlement. This means that people who rely on Housing Benefit to help them pay their rent, including many low paid workers, will struggle to find affordable accommodation in the private rented sector.

Less affordable accommodation available

The Chartered Institute of Housing and the Guardian have put together the results of a survey into the effect of the changes introduced in April 2011 ie the LHA limits and the setting of LHA to the bottom third of market rents - click here for more information. The headline is that just shy of 800,000 properties nationally (including Scotland) cease to be affordable. Click here for the article on The Guardian's website, and here for more information on the CIH website

CPAG Challenge

The Child Poverty Action Group were given permission to proceed to Judicial Review to challenge two aspects of the Government's reforms to LHA (which took affect in April 2011): the overall cap on the LHA rates payable and the maximum size of dwelling being reduced to a 4 bedroomed property. The case was heard on 21st July. For more information on their arguments, see the CPAG website.

CPAG challenged the maximum weekly caps on two grounds - (1) as ultra vires because they went against the purposes of the HB scheme ie to prevent homelessness through inability to meet rent; and (2) that the caps and the reduction of the maximum size property eligible for HB under LHA to four bedrooms - are discriminatory.

The Judge disagreed on both accounts. It was concluded that the purpose of the HB scheme is to assist claimants with rent, whilst also protecting the public purse; and that the changes are not discriminatory as those most affected by the caps are claimants living in one and two bed roomed properties, and that the DWP’s data had shown that the reduction in bed room size ’may’ impact on ethnic minority groups ‘disproportionately’ but had sufficient information to discharge their duties. For more information see the CPAG website.

Looking Local website

Kirklees Council are working with the DWP to develop a website aimed at tenants in the private rented sector to enable them to find accommodation they can afford given the changes to LHA. If the website works the idea may be rolled out nationally - click here for more information.

For information on the LHA scheme please see the hbnotes website.

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