Changes to Local Housing Allowance for single people Under 35 from 1 Jan 2012

New rules for single people aged 25-34 living in self contained private rented accommodation 

What is the change?  

Currently single individuals under 25 years old who live in self contained accommodation are only entitled to the rate of Local Housing Allowance for a room in a shared property. This is called the Shared Accommodation Rate. 

However from the 1 January 2012 the Government are expanding this restriction so that it applies to single people under 35 years old. 

As a result of these changes, single people under 35 years old will only be entitled to the rate of Housing Benefit for a room (with shared use of a kitchen, living room and bathroom) and not the rate for a self contained dwelling. This means that the amount of Housing Benefit they receive will reduce significantly.

Who will be affected?

Housing Benefit claimants will be affected by these changes if they are:

• single
• aged 25 to 34
• living alone
• renting self contained accommodation from a private landlord, and receiving or about to claim Housing Benefit

This change will affect both claimants who are being paid under Local Housing Allowance and claimants who are under 35 but still have their claims referred to the Valuation Office Agency (Rent Officer). 

When will the change take effect?

• This change will apply to all new claims made on or after the 1 January 2012.

Existing Housing Benefit claimants, whose claim commenced before 1 January 2012 may have more time before their benefit changes.

• Individuals who claimed Housing Benefit between the 1 of April 2011 and the 31 of December 2011 move onto the Shared Accommodation Rate when their Local Housing Allowance is next reviewed after 1 January 2012.

Local Housing Allowance rates are usually reviewed on a 12 monthly basis, unless a tenant moves or has a change in their household which means they are entitled to more rooms.  

This means Local Housing Allowance will be reviewed either 12 months from the date that the claim for Housing Benefit began, or 12 months from the last time the Local Housing Allowance rate was reviewed. When this anniversary date is reached you will move onto the Shared Accommodation Rate.  

Example Mr Smith claimed Housing Benefit in June 2011. If he does not move, or have a break in claim, his Local Housing Allowance Anniversary will fall in June 12.  At this time he will be moved onto the shared accommodation rate.  

• Tenants who claimed Housing Benefit after April 2008 but before 1 April 2011 and are paid under Local Housing Allowance will move on to the shared accommodation rate nine months after their first Local Housing Allowance anniversary following April 2011.   

Example - Mr Smith, claims Housing Benefit in June 2010. His first Local Housing Anniversary after April 2011 will be in June 2011. If he does not move, or have a break in his claim, he will then receive a further nine months protection from the change. He will move on to the Shared Accommodation Rate in March 2012.   

• Tenants who have claimed without break since before April 2008 and are being paid under the Local Rent Reference Scheme, will be affected when their claim is first reviewed (referred to the Valuation Office Agency / Rent Officer) on or after 1 January 2012.  

What will the shortfall in Housing Benefit be?  

Because the Shared Accommodation Rate varies from month to month based on market rents it is not possible to tell you the exact rate that you will receive.  

However the table below shows you what the difference would be if the change took place today based on December's Local Housing Allowance rates.

For reference most of Hackney is in the Inner East Broad Rental Market Area. All figures quoted are per week. 

Given the size of the shortfall this means that unfortunately individuals who are single and under 35 living in Self Contained Accommodation may not be able to afford their rent and will need to start looking to move to a room in a shared property.  

Will anyone under 35 be exempt from these changes? 

A small number of claimants will be exempt from this change and will still receive the Self Contained one room rate of LHA including:

• individuals that receive a  severe disability premium
• certain ex-offenders; who could pose a risk of serious harm to the public
• people who have lived for three months in a homeless hostel or hostels and have been supported to resettle in the community 

1. Individuals who receive a severe disability premium in the assessment of their Housing Benefit  

To qualify for a severe disability premium you must be:  

• Receiving either Attendance Allowance or Disability Living Allowance Care Component (middle or higher rate only) and  
• Not receiving Carers Allowance, and no-one must be paid Carers Allowance on your behalf 

Individuals who live alone, receive Attendance Allowance, or Disability Living Allowance Care middle or higher, but do not receive Carer's Allowance, will still receive the self contained rate of Local Housing Allowance, and will not be affected by the change.   

2. Ex offenders who post a risk of serious harm to the public  

Some ex offenders who are deemed to pose a risk of serious harm to the public will continue to receive the self contained rate of Local Housing Allowance.  

The exemption however only applies to ex offenders over 25, who are subject to a Multi Agency Public Protection Arrangement (MAPPA) at level 2 or level 3. 

Multi Agency Public Protection Arrangements are a set of arrangements which bring together the Police, Probation, and Prison service to manage ex-offenders who pose a serious risk of harm to the public.  

The exemption may only last for a fixed period and may not cover a person until they reach 35.  

Individuals who are subject to a Multi Agency Public Protection Arrangement (MAPPA) at level 2 or level 3 should let us know immediately. 

3. Individuals who have spent three months in a homeless hostel 

• Individuals who have previously spent at least 3 months living in a specialist homeless hostel or hostels and accepted support to be resettled back in the community, will continue to be paid the Local Housing Allowance Rate for a one bedroom flat  
• In order to qualify the hostel must have been managed or owned by a registered social landlord, (housing association), charity, or operated on a non commercial basis and funded by national or local government. Periods spent in private hostels that are run for profit, do not qualify. 
• The homeless hostel must also have provided shared accommodation and offer either board or shared cooking facilities. Stays in self contained accommodation, where the tenant has their own cooking facilities, do not qualify   
• There is no time limit on how long ago an individual stayed in the hostel, and it does not matter if the 3 month period covers residence in several hostels, or was broken by periods of residence in other accommodation.  
• This exemption covers 3 month stays in refuges for domestic violence, or hostels for drug and alcohol recovery, providing the resident accepted support to resettle in the community 

It is the claimant's responsibility to let us know that they have stayed in a hostel and accepted support to resettle in the community. If you think you may qualify you should contact us immediately. We can provide a proforma which you can give to your former hostel to complete and return to us. 

Where can I get more information?  

If you need more information about the changes please contact us using the details on the right. 

If you are affected by this change and need advice about where to find more affordable accommodation you can call the Housing Options and Advice Team on 020 8356 2929 or visit them at Hackney Service Centre, 1 Hillman Street, E8 1DY.

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Page updated: 30 Dec 2011