The amending regulations which describe how the Local
Housing Allowance (LHA) caps will be phased-in have been laid before
parliament. The text can be found here.

As reported in the press and by the BBC over the weekend,
the timescale for phasing-in the caps has been altered.

How it was
going to be:

Existing claimants

The April 2011 caps would hit from:

a)      the
first Anniversary of the claim that falls on or after 1st April
2011, or

b)      the
date of a change of address or a change that entitled the claimant to a
different number of bedrooms under the size criteria, if this was on or after
1st April 2011, but before the date at (a) above.

The 30th Percentile Restriction would hit
from:

a)      the
first Anniversary of the claim that falls on or after 1st October
2011, or

b)      the
1st October 2011, but before the date at (a) above.

New Claims

Any new claims for LHA made on or after 1st
April 2011 would be assessed under the caps from the outset.

October 2011 would be assessed under the 30th Percentile
Restriction from the outset.

How it is going to be:

Existing claimants

The April 2011 caps and the 30th Percentile
Restriction will hit:

a)      9
months after the first Anniversary of the claim that falls on or after 1st
April 2011, or

b)      9
months after a change on or after 1st April 2011 that gives a
larger number of bedrooms in the size criteria,

which ever
of these comes first.

But if an existing claimant, on or after 1st
April 2011, moves house, or has a change that gives
a lesser number of bedrooms under the size criteria, then the caps and the 30th
Percentile Restriction will hit straight away.

New Claims

April 2011 would be assessed under the caps and the 30th
Percentile Restriction from the outset.

The amending regulations also:

a) provide for an extra bedroom
in the size criteria for a disabled person, and define “disabled
person” for this purpose, and

b) allow local authorities the
discretion to pay LHA to the landlord where the local authority thinks
“that it will
assist the claimant in securing or retaining a tenancy.”

Does this have any bearing on the plans for introducing the Universal
Credit?

It has no direct bearing. However, it shows us two things:

1)
HB is a big ticket amount and it is the roof over
people’s heads. Getting HB wrong causes massive problems for the
claimants concerned.  The
last-minute change in the schedule for the LHA caps reminds us how politically
sensitive HB is, and that all of that baggage will be inherited by Universal
Credit.

2)
The introduction of Universal Credit on the proposed
tight timescale will require the Government to have nerves of steel. But the
last minute change-of-heart over the timescale for the caps suggests that the
Government does not possess said nerves of steel.

J. Arnold

30th November, 2010