Tuesday, 13 July 2010

Local Housing Allowances (housing benefit) rates cut from April 2011

Local Housing Allowances, housing benefit paid to private rented sector tenants in Hyndburn and Haslingden are to be cut by £5 per week, £22 per month.

There is a big issue of a disincentive to work but reducing housing benefits across the board is the wrong answer. It presupposes there are jobs at a time when unemployment is to rise significantly.

It accepts that private sector rents (£128 pw) which are more than twice that of former Council homes (£63 pw) is acceptable and that tenants must carry the burden for a lack of Council homes.

Clearly the answer is to build more Council homes, lowering further the housing benefit bill, reducing the rent dependency and facilitating greater mobility from welfare to work.

New rates April 2011
Local Housing Allowance (LHA) June 2010
1 Room  1 Bed   2 Bed   3 Bed    4 Bed    5 Bed
£51.00  £84.89  £92.05  £113.92  £159.95  £166.85

Local Housing Allowance (LHA) April 2011
1 Room  1 Bed   2 Bed   3 Bed    4 Bed
£46.00  £80.55  £87.45  £103.56  £137.51

*Haslingden rates slightly higher that Hyndburn