At the moment, the rates are set at the median rent for each size of property in the Wigan area (a small number of the properties fall into the St. Helens rate). This median rent usually matches the average amount of rent charged for the properties. This amount then becomes the LHA rate.
Under the new rules the amount will be based on a lower rate (30th percentile). This means that LHA will roughly match the amounts of rent charged for the lowest 30% of the market. In other words 3 out of 10 properties in the area will be the same rate as the LHA.
The new rules will also limit the rate to the 4 bedroom rate. This means if you live in a 5 bedroom property or larger, then you will receive the 4 bedroom rate.
What if I am already getting LHA?
LHA is awarded for a fixed period. Providing that the household doesn' t change (for example, someone moves in or out of your home) then the LHA amount doesn' t change for 12 months.
For example, LHA is awarded in April 2010 and stays fixed at that amount for 12 months. In April 2011 it would change to that months (in this case April 2011) rate.
However, if the household changes at any time then the LHA is amended and fixed for another 12 months or until another change happens. Each time the LHA rate changes then a new anniversary date is set for 12 months later.
If you are already receiving housing benefit (LHA) on 1st April 2011, then you may get up to 9 months protection. This protection will start from your anniversary date. This means that many customers will not see any change to their housing benefit until January 2012 and some will not be affected until later.
But, remember if your household changes this protection may no longer apply.
How the changes will affect LHA in Wigan
It is not possible to say exactly how much the LHA rates will be after April. However, to give you an idea of the effect this change may have on LHA rates, there are some examples below of what the rates for March would be if the change had already happened.
If you are already getting or thinking of applying for housing benefit, you need to consider these changes before you renew or sign a new private tenancy agreement
These are examples to give an indication of the new rates. When the new rules are applied the actual rates may differ.
Wigan rates
LHA rates for March 11 compared to proposed new rates
| Room rate |
Shared accomodation |
1 bedroom |
2 bedroom |
3 bedroom |
4 bedroom |
5 bedroom |
| March 2011 |
65.00 |
83.08 |
98.08 |
115.38 |
155.77 |
178.85 |
| LHA rates if new rules applied |
57.73 |
80.77 |
92.31 |
109.62 |
138.46 |
138.46
(4 bed rate) |
| Reduction per week |
7.27 |
2.31 |
5.77 |
5.76 |
17.31 |
40.39 |
St Helens rates
LHA rates for March 11 compared to proposed new rates
| Room rate |
Shared accomodation |
1 bedroom |
2 bedroom |
3 bedroom |
4 bedroom |
5 bedroom |
| March 2011 |
60.50 |
86.54 |
103.85 |
121.15 |
175.97 |
229.62 |
| LHA rates if new rules applied |
59.00 |
80.77 |
98.08 |
114.23 |
150.00 |
150.00
(4 bed rate) |
| Reduction per week |
1.50 |
5.77 |
5.77 |
6.92 |
25.97 |
79.62 |
