Benefit changes

The Isle of Anglesey County Council is committed to doing all it can to alert new and existing benefit claimants, together with landlords, of the effects of the proposed changes.

We will start informing people over the next few months and will also be working with advice agencies and other bodies to ensure they are briefed about the changes.

When will the changes come into force?

From April 2011 –

• Households, with a financially independent person aged 18 or over will see a reduction in their Housing and Council Tax Benefit ie there will be an increase in the non-dependant deduction, having been frozen since 2001-2002.
• The Local Housing Allowance for five or more bedroom properties will, at annual review, be reduced to the equivalent for four bedroom properties.
• Claimants who receive more Local Housing Allowance than their rent will have the excess removed at their annual review.
• There will be a reduction in the Local Housing Allowance rates for new claimants and within 9 months of their annual review for current claimants i.e. so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit.  At the moment about 5 in 10 properties are affordable.  In certain circumstances the transitional protection of 9 months for current claimants will not apply.  Please ask for further details.
• Housing Benefit claimants who have a disability but not having a carer living at the property, will be entitled to receive benefit for an additional bedroom, as long as there is a need for overnight care and there is an additional bedroom being used by the carer.
• The Coalition Government’s contribution towards Discretionary Housing Payments will increase annually up to 2014-2015.

From January 2012 –

• The age limit for people who live by themselves and are therefore required to claim the Local Housing Allowance rate equivalent to a room in a shared property will increase from 25 to 34 years of age.

From April 2013 –

• A new Council Tax Benefit scheme will be introduced with councils expected to spend 10% less.
• A new £500 per week ceiling for the total benefits that a working age person, not on disability benefits can receive will be introduced.
• The housing benefit payable for working age people in council or social housing will reflect their housing requirements i.e. size of the family.
• Local Housing Allowance rates will be upgraded based on the Consumer Price Index.

From October 2013 to April 2017

• A Universal Credit for all working age income-related benefits and housing costs for pensioners (from October 2014) (except Council Tax Benefit) will be introduced.

These changes are subject to parliamentary approval at Westminster.

If you have further questions contact the Revenues and Benefits Section on 01248 752226/2658 or by e-mail: benefits@anglesey.gov.uk