In February 2011 the Government announced that it would reform the Welfare Benefits System.

As part of this reform the Housing Benefit scheme has and will continue to change. Some of these changes will limit or reduce the amount of benefit that you entitled to. Therefore, if you are getting Housing Benefit, or thinking of making a new claim, you need to consider these changes first.

• Changes affecting tenants renting from a private landlord from April 2011
• Changes affecting tenants who have another adult living in their property from April 2011
• Changes affecting single tenants under the age of 35 from January 2012
• Changes affecting tenants renting from a private landlord from April 2012
• Changes planned from April 2013

A new dedicated team has also been set up to help residents across Greater Manchester who are affected by these changes. You can phone them on 0845 120 2093 (local rate number) or visit their website at www.helpwithrent.org.uk

What’s changing?

From 1 April 2011 the Government:

1. Ended the maximum £15 weekly Housing Benefit excess (also known as a top up) that some customers can receive under the Local Housing Allowance scheme. This means that benefit can no longer be paid above the level of rent.

2. Removed the five bedroom Local Housing Allowance rate so that the maximum level of Local Housing Allowance is set for a four bedroom property.

3. Introduced absolute caps so that Local Housing Allowance weekly rates in any area cannot exceed:

• £250 for a one bedroom property
• £290 for a two bedroom property
• £340 for a three bedroom property
• £400 for a four bedroom property

These caps do not affect Local Housing Allowance rates in Trafford, but may apply if you move to another area.

4. Reduced all Local Housing Allowance rates so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit, rather than every 5 in 10 properties as was the case before April 2011.

5. Where a disabled customer or their partner (with a long term health condition), has a need for overnight care that is provided by a non-resident carer they will be allowed an additional bedroom within their size criteria of their Local Housing Allowance. Please tell us straight away if you think you maybe affected by this change so we can pay you your correct entitlement.

Will I be affected by the April 2011 changes?

If you are renting from a private landlord and you made your claim for Housing Benefit at your current address on or after the 7 April 2008 it is likely that you will be affected by these changes.

When will these changes affect me?

If you make a new claim for Housing Benefit after 1 April 2011 these changes will affect you straight away.

If you already received Housing Benefit before April, your claim will normally be affected 9 months after your review date (known as your anniversary date). Therefore, you and many existing customers will not be affected until January 2012 and some will see no change until March 2012. However, you may be affected sooner if you move home or if someone moves in or out of your property.

If you receive the £15 Local Housing Allowance top up this will end from your anniversary date. The 9 month protection does not apply.

When is my anniversary date?

Your anniversary date is the date you first made your claim. For example, if you claimed Housing Benefit on 5 September 2008, your anniversary date is 5 September. This means that the removal of the £15 excess (top up), would affect you from 5 September 2011.

How much benefit am I likely to lose?

From 1 April 2011 the Local Housing Allowance rates went down, so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than every 5 in 10 properties as was previously the case prior to April 2011.

This change affects all new claims from 1 April 2011. People already claiming Housing Benefit will be protected for a further 9 months after their Local Housing Allowance anniversary date; unless they move home or someone moves in or out of their property. Therefore, many existing customers will not be affected until January 2012 and some will see no change until March 2012.

The current Local Housing Allowance Rates will give you an indication of how much you may receive in future. However, please note that these rates change every month, so they may be different when your protection period comes to an end.

What should I do if I can no longer afford to pay my rent?

If your benefit is due to go down, it is very important that you act now to plan how you will manage these changes. We recommend you talk to your landlord as soon as possible to see whether they will reduce the rent on your property. As an incentive we can pay your Housing Benefit directly to your landlord if they agree to reduce the rent charged to an affordable level.

If it’s not possible to renegotiate your rent you could either make up the shortfall yourself or start looking for cheaper shared accommodation. You might want to talk about your situation with Housing Options Service Trafford or the Citizens Advice Bureau.

A new dedicated team has also been set up to help residents across Greater Manchester. You can phone them on 0845 120 2093 (local rate number) or visit their website at www.helpwithrent.org.uk

We may also be able to help you meet the gap between your benefit entitlement and the rent you pay by awarding a discretionary housing payment. The amount of money available for these payments is limited so we will have to consider your circumstances carefully.

Apply for a Discretionary Housing Payment

What’s changing?

On 1 April 2011 there will be staged increases in the rates of non-dependant deductions for both Housing Benefit and Council Tax Benefit. By April 2014, these increases will bring the rates to the level they would have been had they been fully increased each year since 2001 (when the rates were frozen).

These deductions are taken off Housing Benefit and Council Tax Benefit awards for other adults (other than a partner) living in a property. For example a deduction would be made for a grown up son or daughter. The amount we deduct depends upon how much income the other adult receives.

What should I do if I can no longer afford to pay my rent?

You can talk to your non-dependant and see if they will contribute more towards the household costs.

We may also be able to help some people to meet the gap between their benefit entitlement and the rent they pay by awarding a discretionary housing payment. The amount of money available for these payments is limited so we will have to consider your circumstances carefully.

Apply for a Discretionary Housing Payment

From 1 January 2012:

The LHA shared room rate which applies to most single people under 25 will be extended to people aged under 35.

This change was originally planned for April 2012 but has been brought forward 3 months and will take effect from January 2012 to coincide with the end of the transitional protection for existing tenants.

This means that single tenants under the age of 35 making a new claim on or after 1 January 2012 will be entitled to the shared room rate rather than the one-bedroom rate. Existing customers will move to the shared room rate at the same time as their transitional protection ceases.

This change will not apply if you:

• Need an extra bedroom for a carer who provides you with overnight care, but doesn’t normally live in your property;
• Live in supported housing provided by a housing association, registered charity or voluntary organisation
• Are an ex offender, aged 25 or over, and are subject to active multi agency management under a multi-Agency Public Protection Arrangement (MAPPA);
• Have spent at least 3 months in a homeless hostel to be resettled back into the community.

Please tell us straight away if you think you may qualify for an exemption.

How much will I receive under the shared room rate?

The current Local Housing Allowance Rates will give you an indication of how much you may receive under the shared room rate. However, please note that these rates change every month, so they may be different in January 2012, when your claim is changed.

What should I do if I can no longer afford to pay my rent when my rate changes?

If your benefit is due to go down, it is very important that you act now to plan how you will manage these changes. We recommend you talk to your landlord as soon as possible to see whether they will reduce the rent on your property. As an incentive we can pay your Housing Benefit directly to your landlord if they agree to reduce the rent charged to an affordable level.

If it’s not possible to renegotiate your rent you could either make up the shortfall yourself or start looking for cheaper shared accommodation. You might want to talk about your situation with Housing Options Service Trafford or the Citizens Advice Bureau.

A new dedicated team has also been set up to help residents across Greater Manchester. You can phone them on 0845 120 2093 (local rate number) or visit their website at www.helpwithrent.org.uk

We may also be able to help you meet the gap between your benefit entitlement and the rent you pay by awarding a discretionary housing payment. The amount of money available for these payments is limited so we will have to consider your circumstances carefully.

Apply for a Discretionary Housing Payment

From April 2012 Local Housing Allowance rates will be frozen. The rates will then be set annually (from April 2013) by using the lowest of the following:

• The Consumer Price Index (CPI); or
• The 30th percentile of market rents.

You will move onto the frozen Local Housing Allowance rate on your LHA anniversary date or earlier if you:

• make a new claim for Local Housing Allowance; or
• already get Local Housing Allowance and move into another privately rented property.

Changes planned from 2013 are not yet law and the information about these is based on Government announcements.

Introducing an overall benefits cap

The overall amount in benefit a household can receive will be capped. This is likely to be £500 for a couple and £360 for a single person per week.

Introducing the Size criteria in the Social Sector

Housing Benefit will be restricted for some people who are living in a property that is larger than their household size. This will apply to working-age customers renting from a social landlord.