I’ve had a number of calls recently regarding the 9 months transitional period concerning the announced changes to LHA from April 2011. Most enquiries are in relation to a letter from the local authority giving examples and it would seem most examples either conflict or differ between authorities.

I thought therefore we would produce some guidance as to how the transitional period works.

What’s changing?

As a quick summary, the following changes take effect on 1 April 2011:

  • An additional bedroom in any case where the customer or their partner is a person who requires overnight care
  • New discretionary direct payments to landlords (see discussion here)
  • Maximum number of bedrooms reduced from five to four bedrooms
  • The LHA rate will no longer exceed the contractual rent (or the tenant’s share of the contractual rent in joint tenancies) thus removing the £15.00 weekly excess amount
  • Introduce maximum (capped) weekly rates as follows:
    • £250 for a one bedroom property
    • £290 for a two bedroom property
    • £340 for a three bedroom property
    • £400 for a four bedroom property
  • Change the method for calculating the LHA rate so that it is based on the rent at the 30th percentile of rents achieved in the broad rental market area

Transitional Protection

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