Although not given a great deal of coverage in the media reports, benefit colleagues might wish to be aware of the two paragraphs on HB Reform which featured in the Chancellor's pre-budget report on 9th December.
Chapter 5 Achieving fairness and providing opportunity.
Housing Benefit Reform.
5.16 The Local Housing Allowance(LHA) was introduced in April 2008 to give Housing Benefit customers more control over, and responsibility for,their choice of housing.However, the way that rates have been set has meant that tenants in some areas have benefitted more than others and it has enabled some customers to live in more expensive properties that would not be affordable for low income working families.This has driven up costs compared to the previous scheme.In order to control these rising costs, Budget 2009 announced that customers would no longer be permitted to receive more in Housing Benefit than they have to pay in rent.
5.17 However, recent consultation suggests there are disadvantages to withdrawing the excess.The Government will therefore delay the reform until April 2011 and launch an immediate consultation on its approach to Housing Benefit Reform and affordability.The Government will also introduce a package of administrative reforms that will save around £100 million per year by 2012-13.This includes measures to reduce the scope for fraud and error across the benefits system to ensure recipients receive correct payments.
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