Rule changes for Housing Benefit and Council Tax Benefit from April 2011
More government changes coming from 2012
The government has announced plans for other changes starting from 2012. We don't have many details yet and plans may change, but here is what we know so far:
Changes planned from January 2012
Changes planned from April 2013
-
Housing Benefit will be restricted
for some people whose home is larger than their household needs. This will apply to council and housing association tenants of 'working age'. At present, 'working age' people become 'pension age' people when they reach the state retirement age for women. This is increasing from 60 to 65 between April 2010 and April 2020.
-
Local Housing Allowance (LHA) rates will be increased in line with the Consumer Prices Index
instead of being linked to local rent levels. This is likely to mean that LHA rates will lose touch with the local rented housing market - they will not reflect local rents;
-
There will be a 'benefit cap'
- a maximum benefit income level. Some benefits will be exempt from the cap. Housing Benefit is likely to be the benefit that will be reduced when someone's benefit income reaches the cap level. The cap is most likely to affect families with more than four children.
-
Council Tax Benefit may be abolished
and replaced with a local scheme run by the council, but this must cost less than the current scheme.
-
Housing Benefit will become part of the Universal Credit scheme that will replace out-of-work income-related benefits and tax credits to help people move into work.
Last Modified: Tuesday 27 March 2012