Landlords Association Recent Landlord News Good news – Housing Benefit allowances going up from April 6 2020

Good news – Housing Benefit allowances going up from April 6 2020

house prices growth january 2020Housing Benefit allowances are going up from April 6 2020.

The freeze, that has been in place since 2016 has now been lifted, as of January 13 2020. 

The benefits generally will see an increase, of about 1.7%.

The benefits, include Universal Credit and PIP (Personal Independence Payment), though PIP and other disability benefits that were not frozen in 2016.

Mr Quince, the Minister for Welfare Delivery, said:

“This Government is levelling up opportunity across the UK. This will be a welcome increase for around 900,000 people as we provide more money to help pay for housing”.

“We are committed to tackling all forms of homelessness – ending the freeze on housing benefits is just one part of achieving this. We have announced an additional £263 million to help councils provide better support to homeless people, and importantly, prevent people from becoming homeless in the first place”.

“We will continue to work with the Ministry for Housing, Communities and Local Government, and others across Government, to find ways to support the cost of living in the rented sector”.

There are 1.4 million people in the PRS receiving Local Housing Allowance. The benefits change is intended to provide an average of approximately £10 extra a month to tenants in the PRS.

Below are the new Housing Benefit rates coming into effect on or around April 6, 2020: 

For single person

Increasing from £57.90 to £58.90 for under 25’s.

Increasing from £73.10 to £74.35 for over 25’s

Increasing from £73.10 £74.35 for those entitled to the main phase ESA

Lone parent

Increasing from £57.90 to £58.90 for under 18

Increasing from £73.10 to £74.35 for 18 or over

Increasing from £73.10 to £74.35 for those on entitled to main phase ESA

Couples

Increasing from £87.50 to £89.00 for those both under 18

Increasing from £114.85 to £116.80 for one or both who are 18 or over

claimant entitled to the main phase ESA 114.85 116.80

Dependent children

Increasing from £66.90 to £68.27

Single/lone parent – state pension age and over

Increasing from £181.00 to £187.75

The couples – state pension age and over

Increasing from £270.60 to £280.85

Polygamous marriage

For the claimant and the other party to the marriage where one or more of the members of the marriage are state pension age or over – increasing from £270.60 to £280.85.

For each additional spouse who is a member of the same household as the claimant and one or more of the members of the marriage are state pension age or over – increasing from £89.60 to £93.10

Premiums

Family – increasing from £17.45 to £17.60

Family (lone parent rate) – rising from £22.20 to £22.20

Disability

  • Single person – increasing from £34.35 to £34.95
  • Couples – increasing from £48.95 to £49.80

Enhanced disability

  • Single person – increasing from £16.80 to £17.10
  • Disabled child – increasing from £26.04 to £26.60
  • Couples – increasing from £24.10 to £24.50

Severe Disability

  • Single person – increasing from £65.85 to £66.95
    •  
  • Couples (lower rate) – increasing from £65.85 to £66.95
  • Couples (higher rate) – rising from £131.70 to £133.90

Disabled child – increasing from £64.19 to £65.52

Carer – increasing from £36.85 to £37.50

ESA components

Work-related activity – increasing from £29.05 to £29.55

Support – increasing from £38.55 to £39.20

The Government figures suggest millions of people on Universal Credit, as well as those on the old benefits system, will also see their payments rise in-line with inflation. 

Mr Sasha Charles Director of Landlord Advice UK said: “This increase will mean, for those tenants, not on full housing benefit will have to pay less in their contribution towards the rent. This will help to reduce rent arrears, for tenants who have been struggling, financially”.

Author: Helen Cartwright

Date: 28th of February 2020

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