Local housing allowance Sarah Clarke Solicitor CPAG LHA

Local housing allowance Sarah Clarke Solicitor CPAG

LHA – new rent restriction rules l l l Introduced nationally s 30 WRA Existing pathfinder regs in Sched 10 HB regs Replaced by new draft regs amending HB regs mostly in: – – The Social Security (LHA and Information Sharing) Amendment Regs 2007 Rent Officers (HB Functions) Amendment Order 2007

LHA Applies where claimant after 7/4/08: l l Makes a new claim Moves house NB Other changes in circs do not move claimants on to LHA. G 10/2008 claimants can withdraw claim and make fresh claim under LHA with a week’s gap

Exclusions and exemptions l No restrictions – LA, HA, RA protected tenancies etc l Exempt tenancies under pre-Jan 96 rules – Charities and voluntary organisations with care, support and supervision l Tenancies still under LRR Caravans, houseboats, hostels Non-excluded HAs

How does LHA work? l On 20/3/08 and as often after as appropriate Rent Officer determines one or more broad rental market areas within LA l BRMA is: – – – 2 or more distinct areas of residential accommodation Within which person could reasonably be expected to live… Containing residential premises of a variety of types/tenancies

LHA l l RO tells LA postcodes contained within each BRMA RO compiles list of rents for assured tenancies within BRMA in reasonable repair of same size as LHA categories assuming no-one entitled to HB, excluding payments for services LHA is the median for that category RO provides LA with list of LHAs monthly

LHA l l For properties over 5 beds – RO can provide if thinks necessary or LA applies to RO for LHA LA publishes LHAs (See also lha-direct. therentservice. gov. uk) l LA refers to ROs for board and lodging determinations

Size criteria One bedroom for each of the following: l A couple l A person over 16 l 2 children of same sex l 2 children under 10 l A child

Which LHA category applies? One bedroom shared accommodation for single claimants under 25 unless: – – qualify for SDP under 22 and in care of LA after 16 Couples in shared accommodation

Which LHA category applies? One bedroom self contained accommodation for l Single claimants over 25, couples if – l They rent 2 rooms or one room + bathroom, toilet, kitchen Care leavers under 22, under 25 s who qualify for SDP, regardless of size property rented

Which LHA category applies? LHA for the no of bedrooms allowed by the size criteria for: l Couples with children l Lone parents l Households with non-Ds

LHA Eligible rent/maximum HB is: l LHA for BRMA for claimant’s postcode of appropriate size Or if lower l Rent liable to pay rent plus £ 15

LHA - How to calculate HB Elsie, 28 shares with 3 friends, rent £ 200 per Week, ie £ 50 each. E earns £ 100 a week. LHA = one bed = £ 75 Cap rent = £ 50 + £ 15 = £ 65 Maximum rent Applicable amount = £ 60. 50 Income less disregard = £ 95 AA - Income = £ 34. 50 x 65% = £ 22. 42 HB = £ 65 - £ 22. 42 = £ 42. 58

When is LHA reassessed? LHA lasts a year. It is reassessed when: l l l No in household changes Change of address Anniversary of claim Change in circs also changes anniversary date

Delay applying LHA Where claimant could afford rent when moved in – No restrictions for 13 weeks Where member of claimant’s household/linked person dies – no reduction in LHA for 12 months

Direct payments – or not l Rules on when direct payments must be made stay the same l Direct payments may be made where LA thinks – – – Claimant likely to have difficulty managing financial affairs Improbable claimant will pay rent Direct payment already made under reg 95

Challenging a rent restriction No appeal against decision on LHA amount Can appeal connected LA decisions – ie whether claimant is young individual

Will the LHA achieve its aims? l l l l Fairness – iron out inconsistencies in the local reference rent – households in same circumstances get same amount Choice - allow claimants to “shop” for better value accommodation Transparency – simpler system of published rates - claimants know in advance what they will get Personal responsibility – ending direct payments to encourage tenants to take responsibility for paying rent Financial inclusion – promoting payments through bank accounts by standing order - secure payment Better administration – simpler system should allow easier administration Reduced barriers to work – greater certainty about help available, better administration avoiding delays on starting work, helping people move to take up employment opportunities.