Changes to Housing Benefit
From April 2011 Local Housing Allowance
The Local Housing Allowance determines the maximum amount of Housing Benefit someone can get based on the rent charges for their local area. The way that Local Housing Allowance is worked out changed on 1 April 2011. Now around 3 in 10 properties should be affordable to people on housing benefit. Before 1 April 2011 around half of all properties were affordable to people on housing benefit. The weekly excess payment of £15 per week has also been removed. The Scottish Government is predicting that as a result of these changes around 60,000 people could lose on average £10 per week on their Housing Benefit.
Housing Benefit for additional room for disabled people needing support
If you rent privately and you need overnight care from someone who doesn’t normally live with you then you might be able to get help to pay for an extra bedroom. When claiming Housing Benefit you must tell your local council’s Housing Benefit department that you need this extra help to make sure you get the right amount of Housing Benefit.
From January 2012 Aged Under 35
From January, people aged under 35 will only be able claim Housing Benefit for a room in shared accommodation rather than for a whole flat or house. This may mean that you will no longer be able to afford your current home and you may have to share your accommodation or find a cheaper alternative. This means that many more people aged under 35 will have to live in shared accommodation. Disabled people who receive Disability Living Allowance will be exempt from this change. Around 7,500 people in Scotland will lose £17-54 per week on their Housing Benefit as a result of this change.
Under Occupancy Rule
From January 2012, an under occupancy rule is being introduced for tenants in the social rented sector. Anyone with a spare room in their home will not be able to get Housing Benefit for that room.
It is predicted that the Housing Benefit changes could lead to the following:
· An increase in evictions of people who cannot afford to pay their rent
· An increase in homelessness applications
· £100m will be taken out of Scottish economy annually
· Further difficulties for disabled people in finding suitable accommodation
· Increased need for money and housing advice services
· Private Rented Sector being less affordable for Housing Benefit clients.
If you cannot afford to pay your rent due to the changes to Housing Benefit, contact Shelter Scotland immediately for further advice. Telephone 0808 800 4444
9am-5pm Monday to Friday. Website http://scotland.shelter.org.uk/