Housing benefit changes from 1 April 2011: Caps on weekly local housing allowance rates
From April 2011, the Government made the decision to adjust the housing benefit and social housing systems. The Government has made many changes, one of which was a maximum rent that housing benefit would pay.
Why have maximum housing benefit rents been introduced?
The Government have introduced housing benefit limits to control the amount of housing benefit being paid per week. This has been done to help reduce the housing benefit yearly spend by the Government.
Lets face it, the amounts of money the system started paying had become ridiculous. For example, someone who qualified for a 5 bedroom property in central London were receiving around £10,000 per month from housing benefit for their rent.
The Governement had finally realised that this was unfair and unaffordable, and therefore introduced the monthly rent limits.
Maximum rents paid by housing benefit
The maximum weekly rates of housing benefit paid in any area was introduced in April 2011 and is based on the number of bedrooms your household qualifies for.
|Number of bedrooms||Maximum rent per week||Maximum rent per calender month|
IMPORTANT: If you are already claiming more than this, your local housing allowance will be reduced up to nine months after the anniversary of your claim, or sooner if your household circumstances change.