The way that local housing allowance (LHA) is calculated is changing. If you rent from a private landlord and claim housing benefit the amount you receive may be reduced. This page tells you about the changes and when they will affect you.

The £15 weekly excess is removed

From 1 April 2011 the extra £15 you could receive if your local housing allowance was below the maximum rent you could claim for was removed. If you are currently receiving this extra amount you will lose it when your claim is reviewed.

Local housing allowance rates are reduced

The way that local housing allowance rates are worked out changed on 1 April 2011. Now around 3 in 10 properties should be affordable to people on local housing allowance. Previously, about half of all properties were affordable. The amount of the reduction to your local housing allowance depends on where you live.

The benefit you receive will not fall immediately. Your claim will not be looked at until the anniversary of your claim, or when your circumstances change - whichever occurs first. If your circumstances haven't changed you will receive the same amount of local housing allowance for nine months. If your circumstances have changed, eg you have become eligible for a smaller property, you will receive the new rate immediately after your claim is reviewed.

A new maximum of four bedrooms per household

The maximum number of bedrooms you can local housing allowance for changed to four on 1 April 2011. Previously, the maximum was five bedrooms. If you are receiving local housing allowance for five bedrooms it is likely that the amount you receive will be reduced.

You can still claim local housing allowance for your home if it has more than four bedrooms. However, the maximum you can receive is the four bedroom rate. You will have to pay the difference between your local housing allowance and your rent.

The benefit you receive will not fall immediately. Your claim will not be looked at until the anniversary of your claim, or when your circumstances change - whichever occurs first. If your circumstances haven't changed you will receive the same amount of local housing allowance for nine months. If your circumstances have changed, eg you have become eligible for a smaller property, you will receive the new rate immediately after your claim is reviewed.

The Local Housing Allowance Direct website has a calculator to help you work out how many bedrooms you can claim for.

New maximum weekly local housing allowance caps

The maximum weekly local housing allowance rates changed on 1 April 2011. The new maximum rates are:

• £250 for a one bedroom property
• £290 for a two bedroom property
• £340 for a three bedroom property
• £400 for a four bedroom property

The benefit you receive will not fall immediately. Your claim will not be looked at until the anniversary of your claim, or when your circumstances change - whichever occurs first. If your circumstances haven't changed you will receive the same amount of local housing allowance for nine months. If your circumstances have changed, eg you have become eligible for a smaller property, you will receive the new rate immediately after your claim is reviewed.

Extra local housing allowance for disabled people who need overnight care

From 1 April 2011 if you rent privately and you need overnight care from someone who doesn’t normally live with you then you can get help to pay for an extra bedroom. It is important that you tell your local council’s housing benefit department that you need this extra help as soon as possible. This is to make sure you get the right amount of local housing allowance.

Increased deductions for non-dependants

The money that can be taken off your local housing allowance if you share your home with adults who aren't dependent on you (eg adult children, relatives and friends) increased on 1 April 2011. Your benefit is reduced because it is presumed that these people will help pay for your rent.

The new weekly deductions are:

• For people aged 25 and over and claiming income support, jobseeker’s allowance or main phase employment support allowance - £9.40

For people aged 18 and over and earning a total of:

• Less than £122 per week - £9.40
• Between £122 and £179.99 per week - £21.55
• Between £180 and £239.99 per week - £29.60
• Between £234 and £309.99 per week - £48.45
• Between £310 and £386.99 per week - £55.20
• Over £387 per week - £60.60

This will not affect you if you share your home with adults who are:

• under 25 and claiming jobseeker’s allowance or income support
• non-working full time students, or
• on pension credit.

If the benefit you receive is reduced you will have to pay the difference between your rent and your local housing allowance either yourself or by asking the adults in your home to pay more towards your rent.

Shared accommodation rate for under 35s

From 1 January 2012 if you are under 35, not part of a couple, or responsible for any children, you will only be able to get the local housing allowance rate for a room in a shared house or flat. This is called the ‘shared accommodation rate’.

This could mean that you won't be able to afford your current home. To avoid rent arrears you may want to consider sharing your home or finding a cheaper alternative. If you are also affected by the April 2011 changes to local housing allowance then the amount you receive will only change once.

There are some limited exceptions to this, see the page on housing benefit for under 35s for more information.

Will my housing benefit claim be affected?

If you are renting from a private landlord then it is likely that you will be affected by these changes.

These changes will not apply to you if all of the following apply:

• you made your claim before 7 April 2008 (when the LHA scheme was introduced),
• you have not moved since you made your claim, and
• there has been no break in your claim.

When will these changes affect me?

If you already receive local housing allowance you will not be affected by these changes until the anniversary of your claim or when your circumstances change, whichever happens first.

No change of circumstances:

If your circumstances haven't changed since you last claimed local housing allowance the amount you receive will stay the same for nine months. This is to allow you to adjust to the new rate of local housing allowance.

Change in circumstances:

If your circumstances have changed since your last claim then you will get the new local housing allowance rate immediately. For example, if someone moves out of your household and you become entitled to local housing allowance for a smaller property.

£15 weekly excess

If you receive the £15 weekly excess this will be removed when your claim is reviewed.

What if local housing allowance doesn’t cover all of my rent?

If your rent is higher than the local housing allowance you receive you will have to pay the difference yourself. If you are having difficulty making up the difference it may be possible to:

• talk to your landlord to see if they will consider lowering your rent, or
• apply for a discretionary housing payment from your local council to help make up the difference.

If you are in financial difficulty because of the changes to housing benefit you should get advice immediately. Use our advice services directory to find your nearest advice provider or talk to a Shelter Scotland adviser on 0808 800 4444.