99% Of Councils Feel LHA Cap Restricts Young People’s Access To Housing

Youth homelessness charity Centrepoint said 99% of councils think the level of housing benefit young people are entitled to is not enough to rent in the private sector. People under 35 are usually only entitled to a lower rate of Local Housing Allowance (LHA) known as the Shared Accommodation Rate. And 85% of the 119 English local authorities surveyed said they struggle to deliver their housing duties because of welfare reforms affecting young people. Download the research report The Homelessness Reduction Act: Will it work for young people? From the Centrepoint website.

https://centrepoint.org.uk/media/2511/the-homelessness-reduction-act-will-it-work-for-young-people.pdf

LHA Cap In General Needs Accommodation

The Local Housing Allowance (LHA) limits for tenants in general needs homes will apply in 2019 rather than 2018 as previously announced by the Government.  The announcement sets out a cut in benefit for people in receipt of Universal Credit: for these people LHA rates will apply to all new and existing tenants where their social rent is higher than the relevant LHA rate. This will include the Shared Accommodation Rate for single childless people under 35. People moved by the DWP from Housing Benefit to Universal Credit after April 2019 whose overall benefit entitlement is lower will be protected, in cash terms, under transitional protection arrangements. On reaching state pension age Universal Credit claimants flowing back on to Housing Benefit with tenancies signed before April 2016 will also continue not to be subject to LHA limits.  Read more on the NHF website.

Low LHA Rates Lock Out Claimants

Housing benefit rates paid to claimants renting privately have fallen well below actual market rents - leaving claimants with no access to housing. Since 2011, Local Housing Allowance (LHA) rates have been supposed to reflect the lowest 30% of market rents, but due to a series of caps it has not risen as fast as rents in many areas. This means claimants in some areas - particularly those under 35 who can only claim the rate for a shared room - cannot afford to rent at all and may face street homelessness. The news will raise concerns among housing associations, with social sector tenants’ benefit limited to LHA rates from April 2018. In some areas - particularly those of low demand - the shared room rate will be well below existing social rents, meaning tenants on benefits will struggle to pay. Read more on the CIH website.

40% Of Homeless Young People Could Be Hit By Removal Of Housing Support

Housing Benefit provides a safety net to young people, without which they would not be able to access accommodation. For those at a point of crisis, removal of housing support could also push vital homelessness services out of reach. Young and Homeless 2015, a survey of homelessness service providers and local authority housing departments, indicates that the problem is compounded by wider welfare reforms and lack of affordable and shared housing:

·         95% of homelessness services reported that benefit sanctions have affected young people’s ability to access accommodation.

·         73% reported that the extension of the Shared Accommodation Rate has greatly affected young people’s ability to access accommodation.

·         On average, the time spent in homelessness services was 16 months, almost twice as long as in last year’s survey (8.5 months).

Read more on the Homeless Link website.

Shared Housing – Parliamentary Written Answer

Mr Umunna: To ask the Secretary of State for Work and Pensions whether he has any plans to exempt from the shared accommodation rate those individuals at risk of serious harm or injury as a result of gang-related youth violence

Steve Webb: The shared accommodation rate was extended to include those aged 25 up to 35 from January 2012. There are no plans to make any further exemptions for those individuals who may be at risk as a result of gang-related youth violence. However, the Discretionary Housing Payment scheme is available to address the individual circumstances of claims where local authorities may consider further support is needed.

Violent Offenders Forced Into Shared Accommodation by Welfare Changes

There is, emerging evidence of potentially harmful effect of the welfare reforms for which no extra safeguards have yet been pledged. This new worry stems from issues raised in a recent real life case. John is a 30-year old homeless man with a history of violent behaviour including a string of convictions for actual and grievous bodily harm. The advice agency helping John knew that he qualified for housing benefit but not social housing.  A change in the shared accommodation rate housing benefit (SAR) rules had effectively closed off the most obvious option for someone with John's history: a self-contained privately rented flat paid for by housing benefit. The rule change, which came into effect in January, raised the age at which welfare will cover the cost of such accommodation from 25 to 35.  This left his advisors with one practical but worrying problem: to help John to rent a room in a shared home with housemates who are oblivious to his past and the risk he poses – or to leave him on the streets. "The support worker who asked me for advice was in a dilemma," the council officer told me about John's case. "[John's] only option was the private sector but he was dangerous. The only other option was to leave him to sleep rough".  Read more on the Guardian website.

Shared Accommodation Rate - Exemptions

*Local Authority and Housing Association tenants—Social sector tenants normally have their rent met in full (less deductions for non-dependants and earnings) as rents are generally below market rates.

*Tenants in certain supported accommodation—Tenants who are in accommodation where the landlord is a county council, voluntary organisation or charity and provides care, support or supervision. These cases are assessed under pre 1996 rules which recognise that their housing costs may be more expensive.

*Claimants entitled to the severe disability premium—customers in receipt of middle or higher rate care component of disability living allowance provided no one gets a carer's allowance for them.

*Claimants under the age of 22 who were formerly in social services care—Allows care leavers some leeway to become settled and establish links whereby they could share accommodation with others.

The Government has added two further exemptions for those aged over 25:

*A small group of ex-offenders subject to active multi-agency management under the Multi Agency Public Protection Arrangements (MAPPA). Offenders subject to MAPPA are in the main 25 years or over. This is considered appropriate in order to safeguard the public rather than relying on discretionary housing payments.

*People who have spent three months or more in a homeless hostel specialising in rehabilitating and resettling this group within the community. The three month qualifying condition is designed to target people receiving sustained rehabilitation rather than those who have sporadic, short term stays. Targeted at people aged 25 years and over as there is increasing prevalence among this age group of rough sleeping.

Housing Benefit – Parliamentary Written Answer

David Morris: To ask the Secretary of State for Work and Pensions what financial assistance is available other than the discretionary hardship funds, to assist claimants aged under 35 whose housing benefit is restricted to the shared accommodation rate.

Steve Webb: The extension to the age threshold for the shared accommodation rate, from 25 to under 35s has been introduced from January 2012 for new claims. For existing claimants, the change will apply at the end of their transitional protection period or, where no transitional protection is in place, on the anniversary of their claim or on a change of circumstances after that date.  Various groups of tenants in vulnerable situations are exempt from the shared accommodation rate and these will be carried forward to the age increase.  Discretionary housing payments can be paid to those in receipt of housing benefit or council tax benefit, who face a shortfall in meeting their contractual rent and where the local authority considers that further financial assistance with housing costs is required. There is no other financial assistance available from the housing benefit budget for claimants affected.

Concern over Plan to Withdraw Housing Benefit from Under-25s

Housing charities and campaign groups have been outraged by an idea floated by Downing Street to strip housing benefits from under-25s and make them move in with "mum and dad" as a way to "make work pay" and save the UK from growing welfare expenditure.  The proposal was announced just before a speech in which David Cameron praised recent changes to the benefits system as "the most radical, long-term reform" in the UK for a generation. A Downing Street source said that there were many young people who are "low paid are living with their parents and can't afford to move out" and questioned if it was fair to allow unemployed young people to be able to live independently supported by housing benefits.  Currently there are just over 380,000 housing benefit claimants under 25; 57% of those have children and a proportion are in limited or low-paying work. It is still unclear if young parents would be affected by the proposal. Historically, under-25s have been given a significantly reduced "shared room" rate of housing benefit, as they are expected to share a flat or a house with other adults.  After an announcement in the comprehensive spending review in autumn 2010, the reduced rate has been extended to all aged under 35.  Read the rest of this blog post on the Guardian website.

MPs and Peers to Examine Private Rented Sector

A Parliamentary group is to examine the impact welfare reforms will have on young people in the private rented sector.  The All Party Parliamentary Group for the private rented sector is to hear from and question experts on the impact government policies will have on tenants.  Housing benefit changes since January mean that claimants under the age of 35 can claim only for a room in a shared house. The previous age threshold was 25.  According to the English Housing Survey, over half of tenants in the private rented sector - 1.9 million - are aged under-35, of which 36 per cent - 1.3 million - are aged between 25 and 34 and will potentially be affected by the changes.  Read more on Inside Housing.

Benefit Cut Raises Housing Concerns For U'25s

Homelessness charities have raised concerns about the ability of young people to access housing in the private sector following housing benefit cuts brought in this month. The Government has extended the threshold for the Shared Accommodation Rate (SAR) from age 25 to 35. Alice Evans, head of policy at Homeless Link said “It has always been hard to get young people into shared accommodation because you had to convince landlords they were a good proposition as a tenant. Now they’re competing with people who are over 25, potentially in full time work and with a history of managing a tenancy.” The Shared Accommodation Rate (SAR) extension has come in this month for new claimants. Existing claimants will be affected nine months after their claim is reassessed. Read more on 24dash.

Cameron Claims Housing Benefit Cuts Have Slashed Rents

Prime Minister David Cameron has claimed that the Government's housing benefit cuts have brought down rent levels across the country, despite evidence to suggest that they are continuing to reach record highs. Mr Cameron was quizzed in the commons by Labour MP Joan Ruddock about plans to extend the Shared Accommodation Rate (SAR). This will see those aged 35 or under receive only the lower shared room rate rather than the full rate for a one-bed flat. In response, Mr Cameron said that since the Coalition had implemented some of its housing benefit reforms, rent levels had come down. He said: "All parties are committed, as I understand it, to reform housing benefit…it was unacceptable and it had to change and what we've seen so far, as housing benefit has been reformed and reduced, is that actually we have seen rent levels come down. So we've stopped ripping off the taxpayer." Read more on 24dash.

Warning of 'Catastrophic' Wave of Homelessness

Homelessness charity Crisis has warned the Government of an impending "catastrophe" ahead of further housing benefit cuts due to come in from next month. From January, Local Housing Allowance (LHA) caps come in for existing claimants - as does the Shared Accommodation Rate (SAR) extension. The latter will see those aged 35 or under receive only the lower shared room rate rather than the full rate for a one-bed flat. Previously the lower benefit only applied to those under 25. Duncan Shrubsole, director of policy at Crisis, said the charity was "very worried". He said: "We're going to see people getting into real difficulties - just hanging in there, facing eviction and then potentially being uprooted and homeless." Read more on 24dash.

Housing Benefit Changes 'Could Force 11,000 Disabled People Out Of Homes'

Controversial government changes to housing benefit could see 11,000 young disabled people forced out of their flats, putting them at risk of homelessness, according to campaigners. The homeless charity Crisis says the government's own figures show that almost one in five of the 62,500 people in England, Scotland and Wales affected by the proposed extension of the Shared Accommodation Rate (SAR) have a disability. From 1 January 2012, single people aged 25-34 will only be able to claim housing benefit based on the cost of a room in a shared house rather than a modest one-bed flat, bringing them into line with existing rates for people under 25. The average loss will be £41 a week. This will force many disabled people into housing that is inappropriate for their condition, said Crisis. Although 4,000 of the most vulnerable disabled claimants will be exempt because they need help through the day or night, most ill and disabled people will be forced to move into cheaper accommodation, often outside the area where they live. Read more on The Guardian website.

Drastic Benefit Cut Risks Rise in Rough Sleeping

Crisis has published a new national survey that supports its fears that many of the 88,000 people affected by the Government's latest planned cut in housing benefit could become homeless if the change goes ahead. This week the Government is rushing through changes to extend the 'Shared Accommodation Rate' to 25-34 year-olds, which will see an average cut in housing benefit of £47 a week, as their benefits will only cover the cost of a room in a shared house, instead of a self-contained flat. Crisis today called for the Government to rethink the proposed change. The charity says this drastic cut in housing benefit will force people out of their homes and in many cases people will become homeless. The charity says evidence suggests that vulnerable people, including former rough sleepers, are at particularly high risk of being made homeless again, as forcing them to share is inappropriate. Read more details of the survey on the Crisis website.

Housing Benefit Cut For Sharers 'To Start Earlier Than Scheduled'

Welfare reform minister Lord Freud has confirmed that the lower rate for shared accommodation rent will now apply to single people aged between 25 and 35 from January 2012, instead of from April that year. According to the housing charity Shelter, some 88,000 people will be affected. Lord Freud told the House of Commons: "The Government announced in last October’s Comprehensive Spending Review that it would extend the Housing Benefit shared accommodation rate to people under the age of 35 from 2012. By introducing the shared accommodation rate changes slightly earlier, this will bring the timing of the shared accommodation rate change more closely into line with the local housing allowance reforms for existing customers. It will ensure that single people aged 25 to 34 reaching the end of their transitional protection period will experience at that point a single reduction in their Housing Benefit, rather than two separate reductions.” Read more on 24dash.

Housing Benefit: Pregnant Women - Parliamentary Written Answer

Helen Goodman: To ask the Secretary of State for Work and Pensions at what point single pregnant women become entitled to the single room rate of housing benefit rather than the shared room rate; and if he will make a statement.
Steve Webb: Pregnant single women under 25 are entitled to the shared accommodation rate until they give birth, at which point they become entitled to the two bedroom rate of local housing allowance. If a woman in these circumstances chooses to move into larger accommodation before the birth of her child she will need to meet the rent shortfall from other income or she could apply to her local authority to be considered for a discretionary housing payment.

Housing Benefit Reforms – Parliamentary Oral Answer

Stella Creasy: The Secretary of State will be well aware of the severe and long-term shortages of housing currently faced in Waltham Forest, as in many London boroughs. Given that there are 1,500 people aged 26 to 35 currently in receipt of housing benefit in Waltham Forest, where does he think they will be living next year if his plans to change the shared room rate go through?
Steve Webb: One consequence of the reforms to housing benefit will be that the local housing market will change. We anticipate, for example, that some of the larger properties might find themselves converted into houses in multiple occupation, although we do not know exactly what will happen. One problem is that over many years we have seen inadequate house building taking place under the hon. Lady's Government.

Campaign to Save Thousands from Homelessness

Crisis has launched a campaign to save almost 90,000 25 to 34 year-olds from homelessness. Drastic cuts to housing benefit averaging 47 pounds for this age group mean that most will lose their homes. The campaign is calling on Crisis supporters to write to their local MP asking them to stand against these cuts in a Parliamentary debate on Thursday. The cuts mean that 25 to 34 year olds' only hope will be to find a room in a shared house but there is only a limited pool of this type of accommodation available. What's more, even if they can find a property, for most people this lower "Shared Room Rate" doesn't cover the rent, causing hardship and risking homelessness. Read more and find out how to contact your MP on the Crisis website.

Shared Room Rate Change Risks Homelessness

A group of charities has written to the government warning plans to extend shared room rate payments could increase homelessness. The seventeen signatories argue that there is not enough shared accommodation available to meet the increasing demand that raising the age limit for payments from 25 to 35 will create. The letter warns the 88,000 people affected by the move are at risk of homelessness. It says: ‘In many areas of the country this type of shared accommodation simply doesn’t exist. Even where it does, claimants already struggle to find an affordable property, with the Department for Work and Pension’s most recent figures showing 70 per cent face a shortfall of an average of £27 per week.’ The change will double the number of people on the shared room rate, and make it even more difficult to find a suitable property, the organisations warn. Read more on Inside Housing.