Local Housing Allowance
The Local Housing Allowance (LHA) scheme was introduced
nationally from 7 April 2008. It changed the way Housing Benefit is
paid for people living in privately rented accommodation.
The LHA is based on the area in which the claimant lives and the
number of people living in their household. It is not based on the
rent that they are charged by their landlord. This means that
claimants with the same circumstances are entitled to the same rate
of LHA Payment of Housing Benefit
The LHA rate is used to calculate Housing Benefit entitlement
for most customers living in privately rented accommodation.
Payment of Housing Benefit
Normally Housing Benefit will be paid to the claimant as it is
the government’s intention that benefit claimants should be
encouraged to take responsibility for budgeting and paying their
rent themselves.
However, there are certain circumstances where we must or can
use our discretion to pay Housing Benefit direct to the landlord
which includes:
- We must pay the landlord where the claimant has rent arrears
of eight weeks or more
- Where we consider that the claimant may have difficulty
managing their own affairs
- Where we consider that it is unlikely that the claimant will
pay their rent
- Where we consider that paying the landlord direct will secure a
new or existing tenancy as the landlord has reduced the level of
rent
The claimant or landlord can ask us to pay Housing Benefit to
the landlord but there must be reasonable grounds for us to do so.
Additional information may be required or we may need to confirm
information with a third party before a decision can be made about
who to pay.
What will happen if I don’t use my benefit to pay my
rent?
As a tenant you are responsible for paying your rent to your
landlord. This is the same as for tenants who do not get benefit.
If you do not pay your rent your landlord may apply to us to have
your benefit paid to them. Or they may take other action to recover
their money, including evicting you from your home.
Eviction means that:
- you will lose your home
- your benefit may not be paid to you in the future
- you may have difficulty finding new accommodation, as your
landlord is unlikely to give you a reference
- you will still have to pay the landlord the money you owe and
possibly extra money to cover any court costs
- an application for re-housing could be affected as you may be
considered to have made yourself intentionally homeless
Do you need advice on
debt management?
How can I pay my rent?
The easiest way to pay your rent is if you have your benefit
paid into a bank or building society account. That way you can
arrange to pay the rent to your landlord automatically. This is
called a standing order. As long as you have enough money in your
account, you won’t have to worry about remembering to pay your rent
and your landlord will know the rent will be paid
automatically.
If you do not already have a bank or building society account,
you will need to set one up so that your benefit can be paid to
you.
If you have any queries about Housing Benefit and how it is
worked out using the Local Housing Allowance rates you can
email us, visit the
customer helpdesks in the borough or telephone 01233
331111
Does the Local Housing Allowance scheme apply to all
Housing Benefit claims?
Local Housing Allowance does not apply if:
- The accommodation is rented from the council
- The accommodation is rented from a housing association
- The tenancy is excluded from rent restrictions
- The tenancy includes the provision of care, support or
supervision and is provided by a social landlord, charity or
voluntary organization
- The tenancy includes substantial board and attendance
- The accommodation is a caravan, mobile home or houseboat
What happens if the rent is not the same as the local housing
allowance rate that applies to me?
From April 2011 you can not receive any more Housing Benefit
than the amount of rent you pay.
If your rent is higher than the Local Housing Allowance rate
appropriate to your case the maximum amount of Housing Benefit you
will receive will be the Local Housing Allowance rate. You will
need to make up any shortfall yourself or ask your landlord to
reduce your rent. Or you could request a Discretionary
Housing Payment
What should I do if I disagree with a decision that you have
made with regard to my benefit claim?
You may submit an appeal
This webpage was updated on
1/10/2012