LHA Freeze

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Viewing 15 posts - 1 through 15 (of 43 total)
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  • #40087
    RobBox
    Participant

    Just received letter from DWP. Seems that LHA rates are to be frozen from April 2012. :p

    #114471
    Kevin D
    Participant

    That makes sense. Afterall, we know that rent levels are plummeting with landlords desperately falling over themselves to take on any tenant at any rent because of a massive surfeit of available accommodation to let.

    Hopefully the above para contains enough ferrous material to forge into a suitably natty implement to bash the village’s missing idiot over the head…

    #114475
    RobBox
    Participant

    I’ve just made my Housing Options Team’s Christmas with this little gem. :bigsmile:

    #114481
    jmembery
    Participant

    Please tell me that this is a Joke?
    If not, does this apply nationally. Had nothing from the DWP here yet.

    #114483
    RobBox
    Participant

    No joke I am afraid.

    Letter entitled “LHA CPI Uprating” and comes from Mr Parfitt.

    #114484
    peterdelamothe
    Keymaster

    Yes it was on the radio this morning. Dont know the details yet.

    However it was to be expected. The expected £2 billion in “savings” from the 30 percentile caps etc. were derailed by the big rise in rents. The HB budget has continued to rise steadily so the Treasury was bound to look for ways to stop this and try to put downward pressure on the rental mkt.

    #114511
    Andy Thurman
    Keymaster

    Anyone got a link or can provide a copy? DWP/VOA websites strangely silent on the matter. Will need legislative change won’t it?

    #114512
    RobBox
    Participant

    Extract from letter received:

    Details of the uprating were included in the Benefits Uprating Statement on Tuesday 6 December as follows:

    • Freezing Local Housing Allowance rates from April 2012 – This will end the monthly uprating of Local Housing Allowance rates and bring the system in line with the uprating of other pensions and benefits

    #114515
    David
    Participant

    This is what Steve Webb (minister of State) said in Commons on 6.12:

    “On local housing allowance, at the emergency Budget in June 2010, the Government announced that from 2013, local housing allowance rates will be calculated annually by using the lower of the rent at the 30th percentile of local rents or the previous year’s rate uprated by reference to CPI. This will end the monthly uprating of LHA rates and bring the system into line with the uprating of other pensions and benefits.

    As part of the preparation for this change, we need to fix LHA rates, to establish a baseline from which they will be uprated in future. As the new cycle for uprating LHA will be annual, we have decided that the baseline should be one year ahead of the first uprating event. Therefore, LHA rates will be fixed from April 2012.”

    #114517
    Anonymous
    Guest

    Section 130A of the Conts and Bens Act is being amended by the Welfare Reform Act 2012 (as it will shortly become) for two reasons, and one of them is to facilitate annual uprating.

    At the moment, s130A says that a claimant’s maximum HB can be based on ampunt that is not his actual rent liability by reference to an RO determination. As amended it will say that max HB can be based on an amount that is not his actual rent liability, end of – might be by reference to an RO determination or anything else. This is how size restrictions for social tenancies will be allowed, and it is how annual uprating of LHA rents will be allowed as well.

    If the Act is not in force in time for a feeze from next April, I think this could be done by Regulation under the current s130A: eligible rent will still be set by reference to RO determinations, but in all cases it will be the ones that were set in April 2012. The Regs will be amended to remove the recurring monthly figures. But from 2013, it will need the new primary legislation to support CPI uprating because that will break the link with the RO determination.

    #114521
    andyrichards
    Participant

    Presumably “fixed” means they can’t go down either?

    #114522
    peterdelamothe
    Keymaster

    How I see this is that the claimant will in effect lose out on a years increase. This from Nov 2011:

    “Rents are still heading northwards, but tenants may take comfort from the fact they did not climb at such a blistering pace in October,” said David Newnes, director of LSL Property Services.

    “Nevertheless, despite the slower rate of increase, the cost of renting is still rising annually at nearly twice the speed of the average salary and many tenants will need to dedicate a growing portion of their disposable income to the cost of accommodation over the next year.”

    #114535
    RobBox
    Participant

    All very good in some areas of the country. Not so in deepest Surrey! Demand is sky high and landlords can pick and choose. Benefit tenants have just taken another couple of steps further back down the line. Don’t think “biggest landlord in the country” is going to wash much here. Back on the bike. 🙁

    #114546
    Andy Thurman
    Keymaster

    [quote=David]This is what Steve Webb (minister of State) said in Commons on 6.12:

    “As part of the preparation for this change, we need to fix LHA rates, to establish a baseline from which they will be uprated in future. As the new cycle for uprating LHA will be annual, we have decided that the baseline should be one year ahead of the first uprating event. Therefore, LHA rates will be fixed from April 2012.”[/quote]

    As if the implications aren’t bad enough in themselves, we have to listen to this type of lame excuse. |(

    #114558
    Simo
    Participant

    Having identified tthe system was too complex, they must be applauded for the simoplification they have brought in!!! TP here there and everywhere! 😀

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