Shared Accommodation Rate for Care Leavers
published on 11 September 2021
Housing allowances are very important for care leavers and we know that many care leavers do not let themselves be known to the benefits system as care leavers. However it is super important if you are a care leaver to let your Universal Credit work coach know.
Background
Way back in 2018 when we created the first Joint Local Offer in England involving 8 Councils in Nottinghamshire we said that Care Leavers should have the option of living in one-bedroom flats rather than shared HMO type accommodation.
As part of the Local Offer, all Care Leavers up to the age of 25 could receive top up rent from discretionary housing payments (DHP). The amount was the difference between the shared room rate and one-bedroom rate.
Nottinghamshire is a very long county with two different LHA rates. In the north of the county rents are much cheaper than the south. These rates are called the Local Housing Allowance Rate. This rate is set by the valuation office and is independent of the local authority but when a person claims housing benefit or the housing element of Universal Credit, the amount is determined by this rate.
However, the rules for young people mean that even if you are renting a one-bedroom flat, when under the age of 35 housing benefit or housing allowance from Universal Credit will always be equivalent to the shared room rate.
Local Housing Allowance Rates
We have some examples from Nottinghamshire of what the current LHA rates are. However this system applies nationally so If you want to find out what the LHA rate is in your area then you need to input the property postcode into this website. We have marked the difference between the shared room rate and one-bedroom LHA rate.
https://lha-direct.voa.gov.uk/
North Nottinghamshire
Shared Accommodation Rate: £66.50 per week / £288.17 per month
One Bedroom Rate: £80.55 per week / £349.05 per month
Difference: £14.05 per week / £60.83 per month
South Nottinghamshire
Shared Accommodation Rate: £80.55 per week / £349.05 per month
One Bedroom Rate: £108.16 per week / £468.69 per month
Difference: £27.61 per week / £119.64 per month
The commitment in the Nottinghamshire Local Offer meant that Care Leavers in the North could claim £60.83 and in the South £119.64 extra per month from Discretionary Housing Payments (DHP) These were relatively small sums to the councils but in the local housing market meant Care Leavers could rent one-bedroom flats or higher quality HMO's.
The benefit to care leavers meant they were less likely to be in vulnerable situations because they had access to better quality shared accommodation or one-bedroom flats.
Fast Forward a couple of years and after lots of campaigning the Department for Work and Pensions finally agreed to exempt care leavers across England up to the age of 22 from the shared accommodation rate. And finally on 1st June 2021 Care Leavers up to the age of 25 became exempt.
This means that Local Councils in Nottinghamshire will no longer have to fund the difference from their own reserves anymore. But importantly there is no longer a postcode lottery for care leavers regarding this policy.
I’m proud to have been involved along with the councils of Nottinghamshire in helping Care Leavers access better housing and can understand why it was not national before now.
In some parts of England the rental market is so high and the difference between shared room rate and one-bedroom rate is so huge. Therefore, this needed intervention by government.
This has now happened and our Care Leavers in the whole of England no longer face a postcode lottery. In the south and London where rents are high, the financial differences can be hundreds of pounds per month. Let’s have a look at a typical London Local Authority area LHA rate so that you can see the significance of this new policy.
Islington
Shared Accommodation Rate: £147.29 per week / £638.26 per month
One Bedroom Rate: £295.49 per week / £1280.46 per month
Difference: £148.20 per week / £642.20 per month
This new policy means an extra £642.20 per month towards rent payments for Care Leavers in Islington.
Frequently asked questions
Who is this policy relevant to?
This policy is only relevant to you if you claim Housing Benefit or Universal Credit housing allowance and you are a Care Leaver under 25. Care Leavers Nationally can now benefit from being exempt from the shared accommodation rate.
What to do if you are a Care Leaver on Universal Credit?
Ask for a letter from your local authority confirming that you are a care leaver and upload that to your Universal Credit journal so that they can process the correct amount of housing allowance.
You could also write something like this on your journal.
“I am a care leaver. From 1/06/2021 Care Leavers under 25 are entitled to the one-bedroom rate. Please can you confirm that I am getting the one-bedroom rate?”
What to do if you are a Care Leaver on housing benefit?
Ask for a letter from your local authority confirming that you are a care leaver and send to your local council benefits section so that they can process the correct amount of housing allowance.
You could also include something like this in the email.
“I am a care leaver. From 1/06/2021 Care Leavers under 25 are entitled to the one-bedroom rate. Please can you confirm that I am getting the one-bedroom rate?”
What is Universal Credit?
Universal Credit is the new benefits system that brings 7 benefits into one department. The complete roll out of Universal Credit has been delayed because of the pandemic so this means that in some parts of the country the old legacy benefits system is still in place.
What is the difference between housing benefit and Universal Credit housing allowance?
In the old legacy system, it is the local district, metropolitan or London borough council benefits department that pays the rent. They claim that back from central government themselves. With the new system Universal Credit pays the rent, local councils do not get involved. Universal Credit is managed by the Department for Work and Pensions which is a central government department.
I’m on Universal Credit but my local council is still paying my housing benefit?
The local councils are still responsible for paying rent where claimants are in supported or temporary accommodation. These are normally called “Exempt Rents” and will be where care leavers are living in specialised housing receiving support. The rents in these types of housing are generally 5/6 times higher than LHA rates.
Therefore, you may be claiming for housing payments via your Universal Credit Journal or through a claim to your local housing benefit department in your local council.
How do I know what I am entitled to?
If you are claiming housing payments through Universal Credit or you are on the old legacy benefits system and claim through your local council then you can check the following website. (Click below)
Where can I get other information or help with this?
If you are a care leaver then you can contact your personal advisor or the Become Care Advice Helpline
https://becomecharity.org.uk/for-young-people/care-advice-line/
About this blog
This blog introduces what we did in Nottinghamshire but thanks to the Department for Education, the Department for Work and Pensions and the Care Leaver Ministerial Board this is now a national policy and helps care leavers across the country. Thank you so much.
There is a document in the resources section written by the DfE care leaving team about this policy that you can also download.