SI 900/2017 Local housing Allowance
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
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.
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?
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.