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www.londoncouncils.gov.uk
Housing benefit changes 2011-13
The impact in London
West London Lead Members for Housing
16th November 2010
Nigel Minto Head of Sustainable Communities
London Councils
[email protected]
0207 934 9813
www.londoncouncils.gov.uk
Agenda
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What’s being proposed/Timeline
Cost and maps
Implications
London Councils asks
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www.londoncouncils.gov.uk
What’s being proposed - Timeline
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Nov - Dec 2010 – DHP 2011/12 decided
Nov – Dec 2010 – Draft regulations laid
Wave 1
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April 2011 –LHA Caps + 30th percentile change + 5 bed rate
Wave 2
– April 2013 up-rate local housing allowance rates in line with the consumer
prices index rather than base them on local rental values;
– restrict housing benefit for working age social rented sector customers who
are occupying a larger property than their household size and structure
would warrant;
– reduce by 10 per cent housing benefit paid to JSA claimnants where period
which exceeds 12 months; and reduce expenditure on council tax benefit by
10 per cent and localise it from 2013-14, giving councils a greater stake in
getting people back to work and discretion to target benefits to local
priorities, while protecting the most vulnerable.
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Wave 3
– October 2013 Universal Credit
www.londoncouncils.gov.uk
Cost & Implications
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2011/12 national savings of £55m (£47m in London)
London LHA caseload represents 16.4% numerically of the national case load but
68% of the national hit financially on the caps
London individual households hit the hardest on the 30th percentile £17 a week
average (compared to £9 a week nationally)
2012/13 Single Room rent and Shared Room 1 boroughs indicating a possible
23,400 claimants in London could be facing shortfalls of £50 to £90 a week. No
account of this in the DHP budget and further resources should be made available.
32% (59,000) of LHA claims who are in work in London will have a cut in their LHA
compared to 25% across England (DWP response to recent PQ).
60% of landlords in London would not reduce their rent
82,000 households across London will be at risk of losing their home as landlords
would not be willing to lower their rents following the housing benefit changes.
Although the caseload is smaller the magnitude of the impact of 30th cuts in London
are far greater e.g. range from
– £28 to £160 per month for a 2 bed
– £46 to £245 per month for a 3 bed
– £72 to £230 per month for those in a 4 bed that have escaped the national cap
Impact of all the LHA changes on London:
(by potential average LHA shortfall)
www.londoncouncils.gov.uk
Enfield
Barnet
Harrow
Waltham
Forest
Haringey
Redbridge
Havering
Brent
Hillingdon
Camden
City of
Westminster
Ealing
Hackney
Barking &
Dagenham
Islington
Tower
Hamlets
Newham
City of
London
Southwark
Greenwich
Hounslow
Bexley
Wandsworth
Lambeth
Lewisham
Richmond Upon Thames
Merton
Kingston Upon
Thames
Bromley
£250+ per week shortfall
£150 -£249.99 per week shortfall
Sutton
Croydon
£100 -£149.99 per week shortfall
£50-£99.99 per week shortfall
£30 -£49.99 per week shortfall
£20-£29.99 per week shortfall
£0-£19.99 per week shortfall
3 Bedroom
Impact of all the LHA changes on London:
(by potential average LHA shortfall)
www.londoncouncils.gov.uk
Enfield
Barnet
Harrow
Waltham
Forest
Haringey
Redbridge
Havering
Brent
Hillingdon
Camden
City of
Westminster
Ealing
Hackney
Barking &
Dagenham
Islington
Tower
Hamlets
Newham
City of
London
Southwark
Greenwich
Hounslow
Bexley
Wandsworth
Lambeth
Lewisham
Richmond Upon Thames
Merton
Kingston Upon
Thames
Bromley
£250+ per week shortfall
£150 -£249.99 per week shortfall
Sutton
Croydon
£100 -£149.99 per week shortfall
£50-£99.99 per week shortfall
£30 -£49.99 per week shortfall
£20-£29.99 per week shortfall
£0-£19.99 per week shortfall
4 Bedroom
Impact of all the LHA changes on London:
(by potential average LHA shortfall)
www.londoncouncils.gov.uk
Enfield
Barnet
Harrow
Waltham
Forest
Haringey
Redbridge
Havering
Brent
Hillingdon
Camden
City of
Westminster
Ealing
Hackney
Barking &
Dagenham
Islington
Tower
Hamlets
Newham
City of
London
Southwark
Greenwich
Hounslow
Bexley
Wandsworth
Lambeth
Lewisham
Richmond Upon Thames
Merton
Kingston Upon
Thames
Bromley
£500-£700 per week shortfall
£250 -£499.99 per week shortfall
Sutton
Croydon
£150 -£249.99 per week shortfall
£100-£149.99 per week shortfall
£70 -£99.99 per week shortfall
£50-£69.99 per week shortfall
£0-£49.99 per week shortfall
5 Bedroom
www.londoncouncils.gov.uk
London Councils ‘asks’
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Current claimants in the Central BRMA to be subject to the 30
percentile change from April (not October as proposed), but not
the national cap (as proposed for April)
New claimants in the Central BRMA would be subject to the
National Cap.
More money from the discretionary housing pot - We originally
asked for £18m in 2011/12 from the discretionary housing benefit pot.
Upwards of £30m more realistic
Borough discretion – Reinstate borough discretion to refuse to pay
LHA where the landlord is claiming unreasonable rent levels, preferably
before April 2011.
Use direct payments to landlords as an incentive - Returning to a
LHA ‘payments direct’ system to landlord as an incentive to reduce
their rents from 1 April 2011 and be time-limited (with annual review in
the light of market conditions and the extent that landlords are reducing
their rents to the cap level and below)
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