Local Housing Allowance (LHA) is being introduced nationally from 7 April 2008.  It is a new way of working out new claims for Housing Benefit, for tenants who rent accommodation from a private landlord. It also affects tenants already getting Housing Benefit who move into accommodation rented from a private landlord, or have a break in their benefit claim of more than one week.  If you live in council accommodation or other social housing, Local Housing Allowance will not affect you.

With Local Housing Allowance, your benefit is not usually based on the property you live in. It is usually based on:

• who lives with you
• which area you live in
• how much money you have coming in
• what savings you have

In some cases the amount of benefit you are entitled to will be affected by other things. These can include:

• how much your rent is
• whether anyone living with you is expected to contribute to your rent

See our Working Out Your Allowance webpage for more details about this.

How will I get my benefit if Local Housing Allowance applies to me?

Usually you will have your benefit paid directly to you. It will be paid directly into your bank or building society account.

If you do not already have a bank or building society account, you will need to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order.

You can get advice about opening and running a bank account from any bank or building society. You can also get advice from a welfare organisation such as Citizens Advice or the Money Advice webpage.

It is up to you to pay the rent to your landlord. If you don't pay your rent, you may be taken to court and evicted from the property.

Can I have my benefit paid direct to my landlord?

Your benefit is paid to you unless you are likely to have difficulty paying your rent, or if benefit rules say it must be paid to your landlord (for example, if you have more than 8 weeks rent arrears). For more details about this, please see Difficulty Paying webpage.

If you are worried about managing your money, ask us if we can help. In some cases we may be able to pay your rent to your landlord, but you will need to give us some separate information before we can decide about this.

What will happen if I use my benefit for something else?

Your benefit is for you to pay your rent with. If you do not use your benefit to pay your rent, your landlord may take you to court or try to evict you and you may lose your home.

Changes of Circumstance

If you are getting Housing Benefit and you move to a new address or other circumstances change, you should tell us straightaway. You may need to make a new claim for Housing Benefit.

Why are we introducing Local Housing Allowance?

Local Housing Allowance gives tenants more choice in where they live and it's fairer too. This is because with Local Housing Allowance:

• you will be entitled to the same amount of benefit as people in the same circumstances as you
• you can find out how much benefit you can get before you rent a property
• you can decide how much of your benefit you want to spend on renting a property
• you will get your benefit paid to you. It is up to you to pay the rent to your landlord
• you will find out about how much benefit you are entitled to more quickly than before

Further Information

You can find out more information on the Direct Gov website and Department for Work and Pensions website or email the Benefits Team or telephone 01233 331111.

Remember that this information is a guide only. It is not meant to say exactly what your legal rights are. While we have tried to make sure that the information is correct, it is possible that there may be incorrect information or some ideas may be oversimplified as changes to the law could happen over time.