The Spending Review – Change to Housing Benefit/LHA for 25-34yr olds.

One key element of the Spending Review will affect adults between the age of 25 -34 who are renting in the private sector.

(And not in receipt of a severe disability premium due to e.g. receiving DLA mid or high rate Care – *see below for more details)

Currently:

  • If you are aged under 25, are single and do not live with any dependants, you can only get the Local Housing Allowance shared room rate.
  • If you are 25 or over, single and do not live with any dependants,  or a care leaver under 22, or a childless couple, your benefit will be based on the one bedroom Local Housing Allowance rate if you live in:

• a self-contained property

• shared accommodation but have two or more rooms (bedrooms or living rooms) that no-one else can use

The Change:

An increase the age limit of the Single Room Rate to cover all single people aged less than 35 years old, subject to the same exemptions.

 

Around 88,000 claimants will be affected, all of whom will be single, aged 25-34, living in private rented accommodation, and not in receipt of severe disability premium in Housing Benefit.

 

So people aged 25-34 may find themselves losing further benefit, in addition to the announcements already made. How much could they lose? As with all Local Housing Allowance changes, it depends where they live.

 

A 30 year old meeting the above conditions is currently entitled to the following amounts:

Luton – £115.07pw

Milton Keynes – £120.82pw

Sheffield -£94.36pw

Inner East London – £240pw

 

The changes means they will find themselves only eligible to the following amounts:

 

Luton – £61.18pw

  • Loss – £53.89pw

Milton Keynes – £72.50pw

  • Loss – £48.32pw

Sheffield – £65.00pw

  • Loss – £29.36pw

Inner East London – £100pw

  • Loss – £140pw

 

This is in addition to changes already announced, which have been discussed here.

 

 

Check LHA Direct to see changes in other areas.

 

 

*More Information about the Severe Disability Premium*

If you are single or a lone parent [HB sch 3 (14), CTB sch 1 (14), CTB (SPC) sch 1(6), HB (SPC) (6)]

The severe disability premium may be included in your applicable amount if you:

  • receive the care component of Disability Living Allowance at the highest or middle rate, Attendance Allowance or Constant Attendance Allowance
  • and live alone (but if others live with you, see below)
  • and no one receives Invalid Care Allowance for looking after you.

If you have a partner

You may get the severe disability premium if you both:

  • receive the care component of Disability Living Allowance (DLA) at the highest or middle rate, Attendance Allowance (AA) or Constant Attendance Allowance
  • or your partner is blind and you receive the care component of DLA at the highest or middle rate, AA or Constant Attendance Allowance
  • and no one lives with you (but see below)
  • and no one receives Carers Allowance for looking after either one or both of you.

If you are legally married to more than one partner (polygamous marriage) the same conditions must apply for each of your partners.

Other people living in your household

For the purposes of severe disability premium your HB/CTB is not affected if other people living with you are:

  • children
  • or aged 16-17
  • or a person who is registered blind (if a person regains their sight, they are treated as blind for a period of 28 weeks after they cease to be registered blind)
  • or receiving the care component of Disability Living Allowance (DLA) at the highest or middle rate, or Attendance Allowance (AA)
  • or people caring for you who are employed by a charity that makes a charge for this service
  • or landlords/ladies and their partners
  • or co-owners or co-tenants with you or your partner.

If you have a partner and one of you goes into hospital for more than four weeks, your DLA or AA will stop but you will continue to get the Severe Disability Premium, if you have already qualified for it, at the single rate.


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4 thoughts on “The Spending Review – Change to Housing Benefit/LHA for 25-34yr olds.

  1. I have a horrible feeling it might be even worse than that (hopefully I’m wrong) I receive MRC, but on Local Housing Allowance I get the standard weekly 1 bedroom rate for adult over 25, it’s about £90 in my area. There is no premium on it relating to disability.
    Does this mean that actually the reductions will be far more wide reaching if LHA doesn’t allow for the severe disability premiums? Like I say…hopefully I’m wrong. BG Xx

    • If you’re on Mid Rate Care, you should get a severe disability premium on your HB.

      Although this won’t mean you get any more benefit than the maximum available.

      Just that it allows you to have more income coming in before it cuts the amount of HB/LHA you can have. So you should get more HB than you would do if you weren’t receiving the disability premium.

      But it should say on your HB assessment that you get a severe disability premium.

      Does that make any sense, my brain is trying to formulate sentences, but doesn’t seem to be having much luck!

  2. I am 29 and in reciet of full housing benefit, I am unable to work due to a mental health condition, but not in reciet of a severe disability premium, I am a council tennant in a 2 bedroom flat. I was moved into this flat by the council when they decided to condem and destory the single room flats. I have asked today if I will be effected by this change in HB and my housing officer told they were unsure. You seem to be certain this cut is only in the private sector, is that correct?

    • “Around 88,000 claimants will be affected, all of whom will be single, aged 25-34, living in private rented accommodation, and not in receipt of severe disability premium in Housing Benefit.”

      This quote is taken directly from the Treasury Spending Review document. So in their words, only private tenants will be affected by this particular measure.

      But, I’m only a normal person sifting through this information, I would get advice from the CAB or Housing Department, maybe when they’ve had time themselves to check out the new situation.

      And this is not the only change to social housing and housing benefit that is happening.

      Good luck.

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