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Performance
Calculating Housing Benefit
Maximum entitlement
Dependant on type of tenancy = RSL, private tenant (LHA or old rules)
Income
Nearly all income and capital is taken into account
Applicable amount
The government provide figures for certain circumstances (single, couple, children, disabled etc)
Entitlement
HB Entitlement = (Maximum entitlement less 65% of (Income less applicable amount)) less deductionsCTB Entitlement = (Maximum entitlement less 65% of (Income less applicable amount)) less deductions)
Challenges
Recent Change in System
Started training staff on 23rd August 2010Stopped working on the old system (closedown) on 2nd November 2010Started working on the new system (go-live) on 22nd November 2010
Long Term Welfare Changes
The new Government plan a radical overhaul of the Benefits system. The new look benefit system is planned for 3 years time
Short / Medium term Benefit Changes
Housing Benefits will be managed by Cannock Council from 1st April 2011
The new Governments budget outlined changes to the Housing Benefit system. The first changes will come into effect from 1st April 2011
The changes
Effective from 1st April 2011 the the rules will change to:
•end the maximum £15 weekly Housing Benefit excess •reduce the LHA rate to the 30th percentile•take into account the cost of an additional bedroom providing property has a bedroom for a carer. •remove the five bedroom Local Housing Allowance rate so that the maximum is four bedroom •introduce absolute caps so for Local Housing Allowance weekly rates:
•£250 for a one bedroom property•£290 for a two bedroom property•£340 for a three bedroom property •£400 for a four bedroom property
Changes to Housing Benefit from April 2011
Effective dates of changes
The anniversary date is the date a tenant first made the current claim. For example, if they claimed Housing Benefit on 5 May 2010, the anniversary date is 5 May 2011.
Capping
Will not directly effect any claims in Stafford
£15 excess
No longer payable for new claims from 1st April 2011. Will stop for current claims on the anniversary date.
Extra room for carers
This will be effective from 1st April 2011
Reduction in LHA rates (50th percentile down to 30th percentile)
This is effective for new claims from 1st April 2011 and anniversaries that fall on or after this date.
Transitional Protection
Transitional protection is designed to ease the transition for current claimants. Current claimants who reach the LHA anniversary date without a significant change will be protected from the 5 bedroom and 30th percentile change for 9 months.
Significant changes that trigger the new rules
A significant change is where the LHA rate would normally be reviewed; Change of address or change in family size
Example
A tenant is paid a 4 bedroom rate under LHA and receive £15 excess. Their anniversary is in May.
1. No significant change – Their LHA rate is reviewed in May 2011 and the new rate is £10 below their weekly gross rent. They would lose their £15 excess from May 2011 but be paid their gross rent for nine months. After nine months, they would be paid at £10 below their gross rent.
2. Significant change – In April 2011 a 17 year old moves into the property triggering a review of the LHA rate. The claimant is loses the £15 excess and is paid at the 30 th percentile LHA rate immediately (April 2011)
Reduction in LHA rates
Example for February 2011
Feb-11 Shared 1 bed 2 bed 3 bed 4 bed 5 bedMid Staffs £73.42 £98.08 £115.38 £137.31 £183.46 £230.77Shropshire £69.27 £92.31 £114.23 £137.31 £178.85 £225.00Staffordshire North £55.00 £80.77 £98.08 £115.38 £160.38 £219.23
30th PERCENTILE Shared 1 bed 2 bed 3 bed 4 bed 5 bedMid Staffs £62.61 £91.15 £111.92 £126.92 £161.54 £161.54Shropshire £63.53 £87.69 £108.46 £126.92 £160.38 £160.38Staffordshire North £44.00 £75.00 £90.00 £103.85 £150.00 £150.00
Difference Shared 1 bed 2 bed 3 bed 4 bed 5 bedMid Staffs £10.81 £6.93 £3.46 £10.39 £21.92 £69.23Shropshire £5.74 £4.62 £5.77 £10.39 £18.47 £64.62Staffordshire North £11.00 £5.77 £8.08 £11.53 £10.38 £69.23
Direct Payments
Amendment Regulations also extend from 1 April 2011 the circumstances in which HB may be paid directly to the landlord for cases assessed under the LHA arrangements.
Payment can be made to the landlord if the LA considers it will assist the customer to secure a new tenancy or retain an existing tenancy.
Stafford BC If it is clear that a new tenancy is dependant on direct payments to landlord, then we will make payments in this way.
We will not change the payment destination for current claimants unless there is a significant change in circumstances.
Where there is a significant change that triggers the new rules, we will make payments to landlord if it is clear that the tenancy is dependant on direct payments to landlord.
We require documentary evidence before payments are switched to landlord.
Discretionary Housing Payments (DHPs)
To cover things like
Shortfall in eligible rent due to rent officer or LHA figuresShortfall due to tapersShortfall due to non-dependant deductions
Not for…
Shortfall due to overpayments recoveryShortfall due to ineligible servicesReductions in benefit due to sanctions
Qualifying criteria
HB must be in paymentThere must be a shortfall
Discretionary Housing Payments (DHPs)
Deciding the amount
Income (all income regardless if it is disregarded under HB regs)ExpenditureEfforts to reduce shortfall
Period
Usually between 3 and 6 monthsCan re-apply, but efforts to reduce shortfall will be taken into account
Funding
For 2010 – 2011 £17,000 awarded in StaffordFor 2011 – 2012 £17,462 funded by Central Government and a further £3,000 will be funded by Stafford BC Housing Options (£20,462)
Useful links
The Valuation Office Agency is responsible for setting LHA rates. You can find LHA rates for an area by googling “LHA rates”.
The Department of Work and Pensions provides the Local Authority with guidance on benefit regulations. You can look at the “frequently asked questions” sheet they have produced by googling “DWP LHA FAQ”
Questions?
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