5 February 2004 - Brighton leads the way in housing benefit reform giving power to tenants
From today tenants in Brighton will be the first in the country to benefit from the comprehensive introduction of a new form of Housing Benefit – the first major reform of Housing Benefit since its introduction 20 years ago.
The new standard rate of Housing Benefit will be paid straight into the pockets of tenants giving them the chance to shop around – if they find cheaper property they can pocket the difference or go up market and make up the extra rent themselves.
Work and Pensions Secretary Andrew Smith visited the city today to launch the exciting reforms which will make it easier for tenants to budget and move back to work as well as helping cut down on fraud and red tape.
He said: “This new system for Housing Benefit will increase choice and responsibility for tenants. It will be much simpler and quicker to administer.
“Anyone getting the new Local Housing Allowance will also have greater certainty about how much help with their housing costs they can expect if they went back to work, helping them bridge the gap between being unemployed and taking a job.
“I am delighted that Brighton Council has put itself at the forefront of this exciting reform.”
Brighton is one of nine Pathfinder areas to test the Local Housing Allowance which will run for two years and the first to introduce the reforms for all its tenants. Six of the new pathfinders will phase in the changes over a period of up to 12 months and three including Brighton will convert all claimants to the Allowance from day one. Evaluation of the Pathfinders will inform the roll-out of the scheme across the country.
The new scheme will pay a flat rate Local Housing Allowance, varying only by the size of family and area. At present, Housing Benefit is related to the total rent of a house or flat. Set locally by rent officers, the Local Housing Allowance will be based on rents in the area and the number of occupiers in their property. As now, entitlement will be subject to proof of a valid tenancy.
Payment will normally be made directly to the tenant instead of the landlord to encourage tenants to take responsibility for budgeting and paying their rent themselves rather than having it paid for them.
Cllr Sue John, Deputy Leader of Brighton Council, said: “Housing Benefit is high on our agenda in Brighton & Hove. We have a high percentage of private tenants, so we are very pleased to be shaping the reforms by being a pathfinder authority.
"A holistic approach has been taken to implement the changes and we have worked closely with landlords, housing advisers, social justice and welfare organisations. This has been especially valuable because the impact of LHA will be evident in Brighton & Hove from day one, and we shall continue to listen to the views of stakeholders about the effects and pass them on to the Government."
Robert Haydock, Brighton & Hove Chair of the Southern Private Landlords Association, said: “Brighton & Hove City Council have gone the extra mile to ensure the success of the Local Housing Allowance scheme. The high level of co-operation that has taken place with the private rented sector has been most welcome.”
Notes for editors
- The new scheme has been designed to pay the same amount to tenants with similar circumstances living in the same area. This differs from the existing scheme, which ties the level of benefit to the rent actually paid (subject to a range of restrictions applied by a rent officer). Currently, tenants who live in smaller properties than they are entitled to, or less attractive properties, generally receive less benefit than those with similar needs in the same area, who live in larger or more attractive properties.
- Although tenants can ask for "pre-tenancy determinations" under the current scheme, to see how much benefit they might receive for a particular property, this process is time consuming and rarely used. As a result, private tenants often find that Housing Benefit could not meet their rent only after they have already signed a tenancy agreement. This should happen less frequently under the new scheme as a major uncertainty will have been removed.
- There will no longer be a need for the complex rent restrictions and individual referral of rents to rent officers, which should speed up processing times for claimants. The complexity of the Housing Benefit scheme makes efficient administration difficult, illustrated by the fact that a new claim takes an average of 47 days to be processed, with the bottom quarter of authorities taking on average between 56 and 142 days.
- Blackpool was the first of the nine councils testing the Local Housing Allowance to go live with the scheme. Lewisham started on 1 December, Coventry and Teignbridge on 12 January and Brighton & Hove today (2 February). Edinburgh, North East Lincolnshire, Conwy and Leeds will all start on 9 February.
- The full reform package kicks in for all new claims by tenants in Brighton & Hove from day one. Existing claimants who currently have their Housing Benefit paid direct to their landlord - while getting the new standard rates - will continue to have their benefit paid to their landlord directly until June.
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk