Housing Benefit Changes and Housing Reforms - how it may affect you!

Laurence Coaker, Housing and Community Care, Brent Council

 

 The Government has introduced changes to the way that new claims for Housing Benefit are calculated.  A maximum weekly cap has been applied to new claims, depending on the size of the property, made after 1 April 2011. 

 

  Any existing claim for Housing Benefit, made before 1 April 2011, will continue to receive the same rate of Housing Benefit for nine months after the anniversary of the claim. After this 9 month period has expired, the maximum cap will apply.  The caps that have been set are:

 

o   £250 a week for a one bedroom property (including shared accommodation)

o   £290 a week for a two bedroom property

o   £340 a week for a three bedroom property

o   £400 a week for a four bedroom property

 

  The maximum rate of Housing Benefit will be limited to the rate for a four bedroom property

 

 

 

 

 

 

 The government had also increased the “non-dependent” deduction for households who are claiming Housing Benefit, and have a non-dependent (member of the household with their own income) living with them.

 

 Another change that came into effect on 1st January 2012 is that any claimant under the age of 35 years will only be entitled to claim Housing Benefit for a room in a shared house, as opposed to a self-contained flat.  The previous age limit was under 25 years.  The effect of this change will mean that tenants aged between 25-35 years, currently claiming Housing Benefit and residing in self-contained accommodation, will have their entitlement reduced to the shared room rate on the anniversary of their claim

 

 It is envisaged that the net effect of these changes will lead to an increase in homelessness, as private sector landlords evict their tenants and withdraw from the market.

 

·         Housing reforms: the new tenancy strategy - have your say!

Val Barnes, Strategy Partnerships & Improvement, Brent Council

 

*      The Localism Act contains a range of reforms which mark a shift in the way that social housing is developed, let and managed.  The Act was given royal assent at the end of November 2011 and most of the changes will come into effect from April 2012

 

*      The Act requires local authorities to publish a Tenancy Strategy within twelve months of its enactment, setting out how they will respond to the flexibility that the housing reforms introduce.

 

*      Brent Council is consulting with tenants, residents and stakeholders in order to inform this strategy

 

*      Registered providers are required to have regard to the tenancy strategy when setting their own tenancy policies

 

*      Summary of Brent proposed housing reforms:-

 

o   In line with the Homelessness Act 2002, Local authorities currently operate an open housing waiting list, which in effect means anyone can apply. In future Brent will be able to decide who qualifies to join it

o   Brent can choose to give additional priority for housing to certain households

o   The reforms will give local authorities discretion to meet its homelessness duties to homeless households by an offer of private rented accommodation. The consent of the household will not be required 

o   Succession to a tenancy - the reforms will allow for one succession by a spouse or partner of a deceased tenant, although local authorities will have flexibility to extend these rights

o   Affordable Rent – registered providers can let new homes and some re-lets of existing homes  at higher rents which can be set at up to 80 per cent of local market rents

o   Housing Associations - and in future councils - will be able to grant a fixed term tenancy of two years, five years, or longer as well as retaining the option to grant a lifetime tenancy

 

*      It is important to note that these reforms do not affect existing council and housing association tenants

 

*      Consultation on these reforms has now begun and is due to finish on 5th March 2012. If you would like to make your views known please complete the online questionnaire at  http://brent.limehouse.co.uk/portal/regen_policy/tenancy_strategy/

 

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