The government is making changes to the way Housing Benefit is calculated for people who rent their homes from a private landlord from April 2011.

How will the changes affect you?

• From 1st April 2011 the Local Housing Allowance (LHA) rates are going down. This is because the government have decided that LHA rates will be based on the lowest 30% percent of local rents not the middle value as now. 

This will affect everyone who rents from a private landlord and claims housing benefit to help pay their rent. 

• If you rent a property with more than 4 bed rooms the amount of housing benefit you receive will be further reduced. 

This is because housing benefit will be restricted to the LHA rate for a 4 bedroom property.

The LHA rate for all sizes of property has been restricted. At the moment the caps are higher than LHA rates in the Oxford area so this will not affect the amount of housing benefit you receive.

LHA rates are set each month by the Valuation Office Agency. For more information visit the Directgov website. 

• If you currently receive an excess payment of housing benefit, up to £15 per week more than your rent, this will be stopped when your benefit award is reviewed.
• If you or your partner are disabled and require a carer to stay over night the amount of housing benefit you receive could increase. 

This is because a room for your carer can be taken into consideration when your LHA rate is decided.

If this applies to you please let us know.

When will your housing benefit award change?

Any new claim for housing benefit made after 1 April 2011 will be worked out using the new rules. 

Any person who is already receiving housing benefit will be affected from when the benefit award is reviewed. 

This could be on the anniversary date or when there is a change such as:

• Someone moving in or out of the household.
• A new baby.
• A change of address.

In some cases there may be some transitional protection. 

What is transitional protection? 

This means that even though your housing benefit award is affect by the changes the amount of benefit you get may be protected for a limited time up to a maximum of 9 months.  

Transitional protection will apply to customers who were claiming housing benefit under the LHA rules before 1 April 2011. 

And

Who have a new maximum LHA rate decided on or after 01.04.11 because they have reached their anniversary date.

Or

Because they have become entitled to the LHA rate for a larger property.

And

The new LHA rate is lower than the eligible amount that applied immediately before 01.04.11.

In these cases the LHA rate for the period of protection will be either:

The rate that applied before 1 April 2011.

Or

If there was previously an excess payment the amount of the rent cap which was used in the calculation of entitlement of the maximum LHA rate on or after 01.04.11

How long will the transitional protection last?

The protection will normally last for nine months but could end sooner if:

• You become entitled to a larger a higher LHA rate because you are entitled to a larger property and the new LHA rate is higher than or equal to the protected amount.
• You become entitled to the LHA rate for a smaller property. 

• You move.

What can you do?

If you think you are, or could be affected by these changes, there are a number of options for you to consider. These include:

Negotiate a lower rent with you Landlord:
Speak to your landlord or letting agent and ask them to consider reducing your rent (to the new LHA rate).  If you have a good tenancy record, they may be prepared to consider this, instead of having to find a new tenant.

Pay the difference:
Pay the difference between the LHA rate and the rent yourself out of other income.  You should ensure that you have sufficient funds to do this, and don't fall into debt as a result.

Look for cheaper accommodation:
Look to move to a property with a cheaper rent. It may be that you will need to consider alternative areas where rents are cheaper ? this may mean looking outside the city.

Look for employment/education or training opportunities:
Find out about your education, employment or training options; you may have better housing options if you find a job, get a better paid job, or some training to improve your job prospects.

The following information can help you:

On Your FEET Guide (1.57MB PDF) or visit our On Your FEET pages.
Where to get advice leaflet (121kB PDF)

Alternatively, please contact the Housing Needs team on 01865 252858 if you would like to know more about support to help you work or train.

Thinking of renewing your tenancy agreement or moving?

If you are thinking of moving or renewing your tenancy agreement, get advice before you sign anything.

At risk of Homelessness?

If you are homeless or at risk of homelessness because the Local Housing Allowance does not cover all of your rent, visit out Finding a Home page for advice.

Contact Us

For further advice or guidance, please contact:

Housing Needs, Oxford City Council

St Aldate's Chambers
109 St Aldate's
Oxford, OX1 1DS
Telephone: 01865 252858
Email: housingneeds@oxford.gov.uk

Or

Benefits Service, Oxford City Council
P.O. Box 10
Oxford, OX1 1BR
Telephone: 01865 249811
Email: benefits@oxford.gov.uk

Or

Visit one of our Customer Service Centres (Telephone 01865 249811) or a local Advice Centre.

More Information

Download the National Homelessness Advice Service booklet on the Housing Benefit changes:

NHAS Housing Benefit Changes Booklet (182kB PDF)