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Forum Home  →  Discussion  →  Housing costs  →  Thread

SI 900/2017 Local housing Allowance

TJL
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Derby advice - Derby Homes

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Is this in effect a reduction in the Local Housing Allowance   payable as Local Authorities will not   be re-imbursed   for the whole of the LHA - sorry I’m   just too busy to   plough   all the detail?

Thanks   in advance

Toby

HB Anorak
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Benefits consultant/trainer - hbanorak.co.uk, East London

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The changes here are:

- allowing authorities to get a bit of extra cash for taking part in fraud and error reduction initiatives
- a slight change to the formula that prevents council tenants’ rent from being manipulated to increase HB subsidy
removing the so-called “management fee” from HB subsidy for temporary accommodation: I think this is the bit that caught your eye?

Up to and including 2016/17, HB subsidy for leased temporary accommodation has been limited to 90% of the 2011 LHA for the property, plus £60 (£40 in London).  From 2017/18, that £60/£40 is no longer part of HB subsidy - instead DCLG now pays a block grant to councils and HB subsidy is limited to 90% of the 2011 LHA only.

TJL
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Derby advice - Derby Homes

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I’m sorry I’m still unsure and don’t   have the time to plough through the detail does   it mean Local Authorities will not   be reimbursed the Local Houisng Allowance?

HB Anorak
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No, doesn’t affect normal LHA cases at all.  It is transferring part of the funding for homeless temp acc from HB subsidy to DCLG - only affects homeless families in temporary accommodation.