What is Local Housing Allowance?
Local Housing Allowance is a new way of working out Housing
Benefit, which started in April 2008.
Like Housing Benefit, it is to help people on low incomes to pay
their rent. It is a means-tested benefit – this means that how much
you receive will depend on how much money you have coming in each
week. It is also based on the size of your household and the area
in which you live.
Who is affected by Local Housing Allowance?
Local Housing Allowance will only apply to tenants who live in
properties rented from private landlords, and all new claims after
April 2008.
It will not apply to you if:
- you rent your home from the Council
- you rent your home from a housing association, registered
charity or voluntary organisation
- your tenancy started before 1989
- you live in a caravan, mobile home, houseboat or hostel
- you claim benefit for help with mooring fees
- the Rent Officer decides that a large amount of your rent is
paid for board.
Existing customers: If you already get Housing
Benefit, Local Housing Allowance will not apply to you, until you
change address (including a change of room within a property) or
have a break in your claim.
What are the differences
between
Local Housing Allowance and Housing Benefit?
Local Housing Allowance makes
sure that people with the same circumstances, living in the same
area, will receive the same amount of benefit.
Under the current Housing Benefit system, benefit is based on
the size of your household and the property you live in. Currently,
you can ask us for a pre-tenancy determination, to find out how
much your benefit will be based on, before accepting a tenancy, but
this takes a few days. Or, you can accept a tenancy, but you have
to wait until we have worked out your benefit claim to know how
much your benefit will be based on.
Under Local Housing Allowance, benefit will be based on the size
of accommodation that you need.
How much Local Housing Allowance will I get?
So that you can choose accommodation, knowing how much rent we
will use to work out your benefit, the Rent Service sets
monthly rates, which are published in the Council Offices and on
this website.
Currently, customers who choose properties with a cheaper rent
can receive less benefit than those who choose more expensive
accommodation. Under Local Housing Allowance, customers who choose
properties where the rent is less than the published LHA rates will
be able to keep the difference between the two, up to a maximum of
£15 per week.
How is Local Housing Allowance paid?
Local Housing Allowance is paid direct to the tenant,
not to their landlord. So it will be the tenant’s
responsibility to pay their rent to their landlord.
The easiest and quickest way to receive your money, whether it’s
Housing Benefit or Local Housing Allowance, is by BACS. This
ensures that your money is paid directly into your bank account on
the day that it is due – you won’t have to wait for a cheque to
arrive or wait for it to clear after you pay it into your account.
(For more information on BACS.)
Local Housing Allowance cannot be paid into a Post Office card
account like some other benefits, so you will need to open an
account with a bank or building society if you haven’t already got
one. (For
more information about basic bank accounts.)
In some cases, we may be able to pay your landlord direct if,
for example you would not be able to manage your finances on your
own. If you are more than eight weeks in arrears with your rent, we
will pay your benefit direct to your landlord until the arrears are
cleared.
How is Local Housing Allowance worked out?
Local Housing Allowance is based on the number of bedrooms you
need for your family. The following is used to work out what size
property you need:
One bedroom for:
- every adult couple
- any other adult over 16 years of age
- any two children of the same sex, aged under 16
- any two children regardless of their sex, aged under 10
- any other child
The Rent Service sets rates for different size properties each
month. The rate your benefit will be based on will depend on the
size of your household.
We will then work out how much Local Housing Allowance you will
receive by looking at your income and savings – in the same way as
the current Housing benefit scheme.
If you are single and under 25 years old, you will only receive
the rate for shared accommodation.
If you are over 25 years old, or part of a couple under the age
of 25, but choose to live in shared accommodation you will only
receive the rate for shared accommodation.