Changes To Housing Benefit in 2011
In the spending review of 20 October 2010 George Osborne announced a series of changes to housing benefit. From April 2011 claimants will only be able to claim a rent based on the 30th percentile of rent in their area (previously 50th percentile). The age at which single people will be able to claim for a self contained one bedroom flat rather than the shared room rate will be increased to 35 years. The maximum payable under LHA was also set to £400 per week. These changes will mean significantly lower amounts of benefit will be paid, especially in Central London. Transitional protection will apply to existing claimants, their eligible rent will be reduced based on the anniversary date of when they first made their claim for benefit. The government has stated that the purpose of these reductions is to reduce the fiscal deficit and to increase the incentive for people to work. The reduction in benefits will mean that some families will have to leave their existing homes and find cheaper ones.
Read more about this topic: Housing Benefit
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