Author: Karen Dunn, Changing Futures Welfare Benefit Team, Citizens Advice Staffordshire North & Stoke on Trent
Extension of exemptions from Local Housing Allowance (LHA) shared accommodation rate (SAR)for Universal Credit, and the Single Room Rate (SRR) for Housing Benefit to include victims of domestic abuse and victims of modern slavery from 1 October 2022
If you rent privately, local housing allowance (LHA) is used to work out how much HB or UC housing costs you receive.
Depending on your age, who you live with, the rent levels in your area, and your household circumstances you’ll receive help with your housing costs paid at a set rate. For example, you’re 38 years old, you live alone, have no care needs, and you live in a privately rented house with 2 bedrooms. In this situation you might only receive the one bedroom rate leaving you with a shortfall on your actual rent.
LHA rates and a bedroom calculator can be found on your local authority’s website, or at Search for Local Housing Allowance rates by postcode or local authority : DirectGov – LHA Rates (voa.gov.uk)
Local housing allowance (LHA)/HB if you’re under 35
Most single renters under the age of 35 and claiming UC housing costs, can only get the shared accommodation rate which is much lower than the other LHA rates. This makes it harder to find somewhere affordable to live and you may have to look for shared accommodation or a bedsit.
The shared accommodation rate is a flat rate paid to anyone under the age of 35 regardless of how many bedrooms they have. This will vary depending on where you live. For example the SAR in Birmingham is currently £67.00 a week; in Dover it’s currently £78.59 a week, and in Stoke on Trent it’s £60.95 a week.
For HB it’s exactly the same but is referred to as the Single Room Rate (SRR).
What’s changing?
New legislation has been issued that will extend the list of exemptions from the Shared Accommodation Rate/Single Room Rate: Housing Benefit and Universal Credit (Victims of Domestic Abuse and Victims of Modern Slavery) (Amendment) Regulations 2022 (SI.No.942/2022) is available from legislation.gov.uk.
From 01/10/2022 a single person with no children who has reached the age of 16 will be exempt from the SAR/SRR if they are:
- under 35 and a victim of domestic abuse
- under 35 and a victim of modern slavery
The DWP states:
“Victims of domestic abuse will be required to provide written evidence from a ‘person acting in an official capacity’ that their circumstances are consistent with those of a victim of domestic abuse and that they have made contact with said person in relation to such an incident.”
A person acting in an official capacity could be a Police Officer, an IDVA (Independent Domestic Violence Adviser), a DA Support Service or Refuge, a mental health counsellor, GP/Consultant, Housing provider, etc.
“Victims of modern slavery are determined by the Home Office’s National Referral Mechanism. A claimant who has been the subject of a positive Conclusive Grounds decision which determines someone as a victim of modern slavery, can claim the exemption…. In terms of modern slavery evidence, a victim is issued a letter by the Home Office, so that letter is acceptable as evidence, and duplicates of that can be provided by the Home Office should the letter be misplaced.’
Note: the onus to claim either of these exemptions will remain on the claimant and they will have to self-identify.
“The claimant is expected to self-identify for either of the exemptions. There is work ongoing with stakeholders to advertise the change to as many people as possible, and the Department is training operational staff to ensure they know about the exemptions, but the onus is on the individual claimant to raise it. ‘There may be changes made to the available Information Technology in October 2023 at which point prompts could be added to the system. The Work Coach guidance does include the issues around domestic violence, and it shall be checked whether it also includes modern slavery guidance.”
Example 1
Sam is 29 years old, she has no children. She left her abusive partner and fled to a different area where she was rough sleeping for a while. She was referred to her local DA service and has been living in a refuge for about 3 months. Her specialist DA worker helped her to claim UC and is supporting her to move into her own property. There is a 1 bedroom self-contained private rented flat available.
The LHA for a 1 bedroom property in her area is £86.30 a week. Prior to 01/10/2022 she would only be eligible for the SAR of £60.95 a week leaving her with a shortfall of £25.35 a week (£109.85pcm) which she will need to pay for using her UC of £334.91pcm.
From 01/10/2022 she will be eligible for the 1 bedroom rate of £86.30 a week leaving her without a shortfall on her rent payment.
Example 2
There is also a 2 bedroom private rented house available to Sam. The LHA for a 2 bedroom property in her area is £97.81 a week. Prior to 01/10/2022 she would only be eligible for the SAR of £60.95 a week so she would have a shortfall on her rent of £36.86 a week.
From 01/10/2022 she will be exempt from the SAR, however as a person living alone in a 2 bedroom property she will only be eligible for the 1 bedroom rate of £86.30 a week leaving her with a shortfall on her rent payment of £11.51 a week.
If someone is struggling to pay their housing costs they may be able to apply for a Discretionary Housing Payment (DHP) from their Local Authority Applying for a Discretionary Housing Payment – GOV.UK (www.gov.uk)
Information correct at 21/09/2022
