Hi

When calculating maximum Housing Benefit under LHA rules are ineligible charges taken into account as under the existing system.

Ie. Now - Max HB is eligible rent minus ineligible charges with any rent restriction, then take off any non-dep deduction.

Is Max HB under LHA rules - LHA rate minus ineligible charges then non-dep deduction
Or just LHA minus non-dep?

(And I know if rent is lower than LHA it's plus £15 just to make it more complex still - though is this on liable rent or on liable rent minus ineligible charges).

Very late for appointment and dashing this off - but it's in my head and not letting me settle!

Liz

Picked up the kids and made a cuppa tea!

Now to answering my own query -

looking on DWP website under FAQs - no consideration of service charges.

So, maybe things are actually simpler?! (It's ok, I'm only joking)

Liz

There wouldn't normally be any consideration of service charges, but if the contractual rent is more than £15 below the size related max rent under the LHA scheme, the maximum rent would be the contractual rent plus £15. Logically the contractual rent used in this calculation should be minus the service charges. Anybody know if this is in fact the case?

Brian

Logically, you'd expect that but it's not the case.

The cap rent is calculated without netting off ineligible service charges - effectively LHA will be limited to (gross) contractual rent + £15.

See, e.g. , Para 2.02 the lha guidance manual

http://www.dwp.gov.uk/housingbenefit/lha/lha-guidance-manual-amd1.pdf

Jon

Hi

The DWP Resouce Centre information states that under LHA no consideration will be made of service charges. The HB LHA guidance states that the 'cap' rent is the aggregate of payments that the tenant is required to make as a condition of occupying the property. The maximum rent payable is the cap rent plus £15 or the LHA rate, whichever is lower. No mention of reductions for service charges.

It seems service charges are out of the picture in the calculation for HB(LHA) claimants. Back to the Resource Centre pages - it is up to the tenants "discretion about whether or not they would prefer to pay a higher rate for accommodation that includes additional services".


Tenants with their choice of properties that we keep hearing about!

Liz

Re my last posting: I'm acting in haste again so apologies as I hadn't noticed Jon's reply which was answer enough as it tells all.

Just to mention in the Frequently Asked Questions re LHA in the DWP Resource Centre (Q34) it does clarify that optional service charges would not be inlcuded (eg. laundry).

Liz