A question about : Just received 'Housing Benefit changes' letter, not sure of the implications.
Hi all,
I woke up this morning to find a letter from the Council (Birmingham City council) stating that there are some upcoming changes to Housing Benefit which will likely affect me.
Honestly, when I got the letter my heart sank because I pretty much live on the breadline as it is and if they cut my housing benefit I don't know what I'll do. The reason why I'm posting is because I'd like some advice on precisely how the changes are likely to affect me. I'm a little confused.
Here's what the letter says:
Single people aged from 25 to 34 will only be entitled to the Housing Benefit shared accommodation rate. The shared accommodation rate is based on the level of local rents for properties that are not self-contained. If you already get Housing Benefit at the one bedroom rate your Housing Benefit will go down when you move to the shared accommodation rate.
I think that means that the changes will definitely affect me, because I currently live in a one bedroom flat and I'm within that age range. Can someone just confirm for me that that is the case?
If it is the case, that's a terrible thing to do. They are effectively saying that if you claim housing benefit and you live in a one bedroom flat, then a one bedroom flat is too good for you and you will have to move into a shared house... Nevermind the fact that it's very difficult to find a new landlord willing to let a room to someone on Housing Benefit, nevermind the fact that some people just don't have the money to afford to move or for a new deposit.
Have I understood all of this properly? I'm really worried. I'm taking on all the work I can find and doing everything I can to improve my prospects of finding a long-term, permanent job. This really doesn't help.
Best answers:
- It is true...How old are you? What is your rent? Your current LHA rate and the new LHA rate you will get once the change affects you? It's a double whammy really as you are also affected by the change so that 30% of properties are affordable rule too. Has it changed to Ј55 per week LHA from around Ј104 a week LHA? That is quite a change.
Many landlords will let a room to someone on housing benefit. You would be a lodger and if you fail to pay the rent every week or fortnight then you can be asked to leave straight away. Most are reasonably forgiving and give you a week to find somewhere else.
You could always find a partner to share your flat with and then you could get the 1 bedroom self contained rate between you. - Yes, unfortunately you will be expected to make up the shortfall on your HB payments or find a cheaper property. Usually a room in a shared house is the most suitable option.
Have you checked what the shared accommodation rate in your area is, to see how much your HB will drop by?
It is hard when these new rules hit people such as yourselves, but I believe the original thought behind the changes was to limit the amount of HB payable to those who rent high cost properties when there are much cheaper options out there. As always, it seems to be those at the very bottom of the pile will have the most to lose. - Thanks for the replies guys. Just to answer some of your questions: I'm 28. My current HB is Ј96 and my new rate would be around Ј55. I do work but my income isn't much and I simply have no way of finding an extra Ј160 a month to make up for the shortfall.
The only positive thing about the letter I got is that it says the changes will only take effect in 9 months, starting from the end of July this year. That means March next year. Hopefully by then I'll have found a permanent job, but with things being the way they are, you never know what will happen, so I had probably better apply for a flat with my local housing association. - I have a one bedroom housing association property, forgive my ignorance but am I affected by these upcoming changes? I do fall within the above mentioned age bracket. Thanks. Sorry to hijack the thread, worrying times these
- Ive been asked by a friend to look at their letter and clarify the situation for them as the benefits agency obv closed till wed now,
They are 31, single on ESA income based work group due to genuine health reasons and get approx 104 per week and already have to pay a difference of just under Ј50 a month for a 1 bed flat and not able/wanting to live with other people due to part of medical reasons (they are rarely leave the property or interact with other people as it is)
They dont seem to meet any criteria be excluded from this so is it right they face essentially homelessness as their rate will be cut to Ј55 a week ?
If so when will this happen
the wording on the letter is :
Quote: - What do they expect people to do who have a bad credit score and, as a result, can't find anyone in the private rented sector willing to take them on?
I'll have a poor credit score and even though I've never missed a rent payment or anything like that I won't be able to find anyone willing to rent me a room in the private sector. What am I supposed to do?
Would the council exempt me from the cut if I explain this to them?
Also, as far as when the changes kick in goes, surely it can't be as soon as that. My letter says:
"The nine months start from 29 July 2012 when we carried out your first Housing Benefit yearly assessment."
The letter I received this morning was the first I'd heard of these cuts. Surely they can't say, we're cutting your benefits in half in less than 2 months time so move into a house share and if you can't do that, have fun sleeping rough (hopefully the weather picks up). Surely not!
My reading of the letter was basically that if you've been on HB for a while you get 9 months beginning from the next anniversary of when you first started receiving HB. Or have I misunderstood? - But Robbie, surely that can't be. Here's why. I applied for HB prior to April 2011, in July 2010 I believe. If the new rules mean that the HB cut comes into effect 9 months after the anniversary of my original application, then they would already have come into effect. Nine months on from July 2011 is April 2012, and my HB payments haven't been cut yet. I know this because I got my monthly BACS remittance slip through the door this morning also.
Another thing is that this is the first notification I've had of this, so if they're saying in the letter that you get nine months to make alternative arrangements, then why would they only send the letter a couple of months before the cuts take effect?
Surely these letters are to tell people currently on HB to make alternative arrangements so that when the cuts hit in 9 months time, they are okay? - There's a DWP Factsheet which explains all the changes which again states it is "first anniversary plus 9 months" for people who claimed LHA prior to April 2011:
https://www.dwp.gov.uk/docs/sar1.pdf
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