slide 1 neighbourhoods directorate service improvement team budget 2010 - update february 2011...

Neighbourhoods Directorate

Service Improvement Team

Budget 2010 - Update

February 2011Service Improvement Team

Benefits Service



Immediate ReformApril 2011

• LHA rate to be set at 30% percentile as opposed median of rent levels for each property in each BRMA

• Removal of £15 LHA excess.• Introduction of 4 bedroom LHA upper limit. • LHA rates capped at £250, £290, £340 and £400 per week for 1,

2, 3, and 4 bed rates accordingly .• Amend size criteria to include a live in carer.• DHP grant increased by £10 million. • Non Dependant deductions will start to be increased to uprated

2001 rates.• Increased ability to pay landlords direct.



April 2011 – effects

30th percentile calculation Effective for all new claims, and anniversary date

plus 9 months for most existing claimants. Reduction from 1 in 2 properties to 3 in 10 PRS

available. 6963 LHA claims affected Average loss is £7.02 per week. Weekly difference - illustrated in next slide.



30th Percentile ComparisonFebruary 2011

30th Percentile Estimates

1 Room 1 Bed 2 Bed 3 bed 4 Bed 5 BedActual June 2010 rate per week £69.23 £121.15 £150.00 £173.08 £230.77 £346.15LHA rate based on 30th percentile per week £62.33 £114.23 £138.46 £160.38 £207.69 £207.69Weekly difference £6.90 £6.92 £11.54 £12.70 £23.08 £138.46

February 2011 LHA rate



April 2011 – effects

Removal of £15 cap Effective for all new claims and anniversary date,

for existing claimants. 2,893 affected Average loss is £9.58 LHA will still match the contractual rent – although

for standard cases less ability to pay shortfall.



April 2011 – affects

4 bed cap Effective for all new claims and anniversary date,

plus 9 months for most existing claimants. 65 cases currently above 4 bed rate. 41 cases affected by restriction. Average weekly restriction is £81.20 per week.

1, 2, 3 and 4 bed LHA caps No cases in Bristol affected.



Transitional Protection For existing claimants for up to 9 months. Will apply from 1st April 2011 when; first anniversary date

arrives, or room need for the dwelling goes up and the new rate of LHA is less than the existing one.

Will not apply to existing claimants from 1st April 2011 when; there is a change of address, or room need goes down.

It will continue to the earliest of; 9 months ending, or there is a change of address, or room need goes up or down.



April 2011 – affectsExtra Room for Carers

Effective from 1st April 2011. Additional room need for a carer(s) over existing LHA room

need rules. That room has been designated for that use, and Claimant partner in receipt of DLA (care) middle or high, or

Attendance Allowance, or A specific need has been identified for that purpose.

63 cases potentially identified. DHP grant increase

£143k to £207k.



April 2011 – affects

Increase of ND deductions to 2001 rates 2073 people affected. Charges increase from 23 – 27%. Highest charge increases from £47.75 to £60.60 per

week for HB. Examples on next slide.



Non Dependant Rates – 2011/12

Income HB NDD 2010 HB NDD 2011 % Increase CTB NDD 2010 CTB NDD 2010 % IncreaseNot working/under £122 7.40 9.40 27.03 2.30 2.85 23.91£122 - £179.99 17.00 21.55 26.76 2.30 2.85 23.91£180 - £233.99 23.35 29.60 26.77 4.60 5.70 23.91£234 - £309.99 38.20 48.45 26.83 4.60 5.70 23.91£310 - 386.99 43.50 55.20 26.90 5.80 7.20 24.14£387+ 47.75 60.60 26.91 6.95 8.60 23.74

Av % Increase 26.87 Av % Increase 23.92



April 2011 – affectsIncreased ability to pay landlords direct

Known as the ‘bribe’ incentive to encourage the landlords to reduce rent in return for rent direct payments.

Not a return to rent direct payment on request. Paid as long as rent direct ‘secures and maintains’

tenancy.



HB/CTB Medium Term Reform

April 2012

Single Room rent increased from 25 to 35. 963 cases affected Protection?

DHP grant increased nationally from £20 to £60m

Fines for those who fail to report changes - £50



Medium Term ReformApril 2013

LHA rates increased by CPI and not local rental values. Size criteria rules for working age socially rented sector

housing. HB entitlement levels will be reduced to 90% after 12

months for those receiving Job Seekers Allowance. Beginning of Universal Credit scheme (including Housing

Benefit and WTC, CTC, IS, JSA (ib) and ESA(ir)). End of Council Tax Benefit – to be replaced by localised

rebate scheme, plus 10% less funding?



Medium Term Reform

Other - April 2013 Overall benefits cap of £500 per week (excluding

some benefits). A new Fraud Investigations Service will start to

cover all aspects of benefit fraud (including HB/CTB).



Actions going forward Forecasting those cases affected and when. Draft letters being prepared to send to claimants in

advance of changes. Website updated with changes from April 2011. Benefits, Housing Solution and Private Rented

Team meeting monthly. Attending stakeholder events – landlord forums,

advice agencies/worker events, BCC staff, claimant groups, etc

Leaflet to be finalised.



Any Questions?

slide 1 neighbourhoods directorate service improvement team budget 2010 - update february 2011...

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