LHA and rent increase

Is a rent increase a change in circs that would move someone from the pre-April 2008 scheme to the LHA?

Situation is; client is joint-tenant with son. Both are on qualifying benefits (pension credit and income support respectively) and as a pre-2008 claim they get half the rent each (total rent is £650 pm).

Client has called me to say landlord has increased rent by £100 pm. Our housing solicitor will look into whether this is valid, but I know they have been here for a long time, do not want tro upset the landlord and the rent was well below the LHA anyway (here for a 2 bed it is £800 pm).

So, irrespective of the issue of the legality of the rent increase - if it is done properly (eg with a new tenancy agreement for £750 pm), will this count as a new claim and they will move to LHA? If so, they will be on the shared room rate as joint tenants which is well below the new rent.

No, a rent increase does not need a new claim and your clients will not move on to LHA.

LHA isn’t an area I thoroughly got to grips with before I all but left benefits so the following should be considered with caution.

Could this be one of those cases where each of the joint tenants is entitled to the 2-bed rate (assuming the son is 35+) on the grounds that each joint tenant is part of the other joint tenant’s household?  On the face of it, it’s double counting but case law seems to suggest it is more than possible - see AA v Chesterfield BC & SoS DWP (HB) [2011] UKUT 156 (AAC) (aka CH/0107/2010).

Thanks for the replies and putting me straight on the LHA situation!

Kevin - have you got a link to the decision you refer to?

Thanks

here’s a link to CH/107/2010 -

http://www.osscsc.gov.uk/Aspx/view.aspx?id=3254

Thanks Ros!

I need some help on interpreting this decision - does it mean that 2 joint tenants (in my case mother and son) who share the same household will automatically qualify for the 2 bed rate each of LHA?

Setting aside the RTR issues in this case (both are Latvian nationals, son has just turned 21,has never worked in UK and is dependent on his mother ), the situation is;

Client is 21 (just turned) and gets DLA HRC and HRM (he is a wheelchair user). He has made a claim for ESA awaiting processing. Mum has claimed CA and mistakenly gave up work but we have advised her to resume work up to CA limit of £100 pw to re-establish worker status.

Client will not be entitled to SDP as part of his HB (or ESA) due to mums claim for CA, so cannot argue for one bed rate for him. The rent of £1175 is well over the 2 bed LHA rate here which is £800. I have been in e-mail discussion with HB who have suggested mum gives up CA claim, so SDP could be used in calculation of his HB (joint tenants are excluded as non deps from HB SDP entitlement, so mum will not count as non dep for SDP purposes for HB but would for SDP in his ESA).

Then they could assess him on 1 bed self contained rate which is £650 pm - mum would be stuck on shared accommodation rate of £338 pm, making total of £988 to rent of £1175 - however mums income from CA plus work is likely to put her over limit on shared accomodation rate.

So if we can get them both assessed at 2 bed rate, this could cover whole rent even taking into account mums income.

Does fact that client is under 35 and would normally get shared accomodation rate (or in this case the one bed rate if SDP could be used in his HB calculation) mean that the above decision would not apply?

Many thanks

PCLC - 21 May 2012 09:20 AM

The rent of £1175 is well over the 2 bed LHA rate here which is £800.

Oops, I read that as weekly and pointed to the £290 cap.

Sorry, I should have made it clear that these were monthly figures. Also don’t be confused about my first post - that was a different case!