The shared accommodation rate that currently applies to single people under 25 who are tenants of private landlords will also apply to people aged under 35.
The new rules mean that if you are a single person aged 25 to 34 living on your own in self-contained accommodation; we can no longer base your Housing Benefit on one-bedroom self-contained accommodation. Instead, we must use a 'shared accommodation rate', which is a much lower rate and may be lower than the rent you pay.
From 1 January 2012, the shared accommodation rate will apply to single private tenants under 35.
This affects people making new Housing Benefit claims from 1 January straightaway and will affect people who are already claiming Housing Benefit after this, depending on when they claimed.
Many single private tenants aged 25 to 34 living alone in self-contained accommodation will find that their Housing Benefit doesn't cover their rent.
When the new rules don't apply
We will not have to use the shared accommodation rate for some single people under 35. The new rules will not apply to you if:
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someone else (for example, a partner, child, elderly relative, friend or grown-up child) lives with you as part of your household.
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you rent from a housing association or the council.
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you are severely disabled and get the middle or higher rate care component of Disability Living Allowance.
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you need an extra bedroom for a carer who does not live with you but who provides you with overnight care.
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you are aged under 22 and have been in the care of a local authority since the age of 16, or have been accommodated by a local authority since the age of 16.
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you have lived in a hostel for homeless people or a hostel that provides rehabilitation and resettlement within the community for at least three months. You must have received resettlement support to help you live in the community.
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you are an ex-offender and your housing has been arranged for you through Multi Agency Public Protection Arrangements (MAPPA) for managing the risk posed by sexual and violent offenders.
When will the new rules start?
The new rules are set by the government and are extremely complicated however we have given details below of the various change dates.
If you claim on or after 1 January 2012, we have to use the shared accommodation rate straightaway to work out your benefit. The shared accommodation rate, like the other LHA rates, can change each month so we can't say how much it will be in the future. However, you can click LHA Rates for the current levels.
If you get benefit under the Local Housing Allowance (LHA) rules
and you claimed (or start claiming) between 1 April 2011 and 31 December 2011, the new rules usually apply 12 months after you claimed. They apply from your 'anniversary date' - the date we look at your LHA rate again on the anniversary of your claim. For example, if you claimed benefit in July 2011, your anniversary date is in July 2012 and we must apply the shared accommodation rate from July 2012, using the July 2012 rate.
If you get benefit under the Local Housing Allowance (LHA) rules and you claimed before April 2011 we have already contacted you to explain the change date depending on the previous 9 month protection you are receiving. If you did not receive this letter or would like further information, please contact us.
If you are already getting benefit and the Local Housing Allowance (LHA) rules don't apply to you (this usually means you claimed before 7 April 2008) the new rules usually apply 12 months after your first annual review after April 2011. Your annual review is a year after you claimed and is the date we look at your claim again. For example, if you claimed benefit in May 2007, your first review after April 2011 was in May 2011 so we must use the shared accommodation rate 12 months after this, in May 2012. We will use the May 2012 shared accommodation rate.
You may be affected sooner if you move or have a change in your household as we may have to use the shared accommodation rate from a different date if you move or have a change in your household that means you need a different number of bedrooms.
What can you do?
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Work out if the new rules apply to you.
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Discuss your options with your landlord - they may consider reducing the rent.
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Consider if you need to move to shared accommodation.
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If the new rules will cause you hardship and your circumstances mean it's difficult for you to move, apply to us for a Discretionary Housing Payment. However, even if we decide to pay this, this will only be a temporary solution.
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Could you make a change to your household? If you live on your own, have more than one bedroom and get the one-bedroom LHA rate, could someone else come to live with you? If someone lives with you as part of your household, the shared accommodation rate won't apply. However, we may have to take a non-dependant deduction off your benefit for them.
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You can contact us and we will offer as much assistance and support as we can.
