LHA Rate to apply if entitled to two bedroom amount but resides in a one bedroom property

Dear All

I am currently doing a housing benefit calculation for a client who reside with her husband and son and is renting a one bedroom flat. They are entield to the two bedroom rates under the LHA.

When doing the calculation for housing benefit do I apply the rate for two bedroom or one bedrooom property.

Look forward to your views and guidance on this.

Thanks

You use the actual eligible rent, after any deductions for ineligible service charges, NDDs etc. up to the LHA level for two bedrooms.

Does the same rule apply to an over 35 year old in shared accommodation.

In the accommodation/area I am thinking of the Shared Rate is under £70.00pw, the One Bedroom rate is over £104.00 but the actual rent is approaching £120.00.

If a claimant is eligible for the One Bedroom rate would they be entitled to that regardless of the fact that they are in Shared accommodation? 

The ‘13/14 Shelter book says not but Gareth’s reply makes me wonder - any thoughts gratefully recieved.

A single claimant aged over 35, or a couple of any age with no children,  is generally restricted to the shared accommodation rate of LHA if they do actually occupy shared accommodation.  There are some exceptions (Severe Disability Premium is the main one), but on the whole you won’t get the self contained one-bed rate of LHA unless you live in self-contained accommodation.

But if the claimant is exempt from the shared rate (as I say, mainly where the SDP applies) then yes - their full rent for the shared accommodation they occupy in real life is compared with the self-contained one-bedroom LHA.

BTW, the full real-life rent used for comparison with the LHA is the unrefined gross rent - there is no need to make any ineligible service charge deductions.  People often comment that the shared accommodation rate of LHA seems to be about £15-£20 a week short of the local market rate.  This is because the Rent Officer has deducted ineligible services that are usually included in shared accommodation rents before setting the LHA.

I think you need p.111 and p.395 et seq of WBH 2014/15 Pete.

In a nutshell, to be eligible for the one-bed self-contained accommodation rate of LHA, you must have exclusive use of at least 2 rooms or exclusive use of one room as well as exclusive use of any one of bathroom/toilet/cooking facilities.

Conversely, the rules on p.398 seem to indicate that unless your client meets any of the exemptions listed on p.399, then their LHA is paid on basis of one-bed shared accommodation rate I’m afraid.