Local Housing Allowance
In October 2002 the Government announced a program of reform to
Housing Benefit, which included a new scheme called Local Housing
Allowance.
What Is Local Housing Allowance?
Local Housing Allowance (LHA) is the new name for Housing
Benefit for people who rent from a private landlord and affects the
way Housing Benefit is worked out and paid.
Who Does Local Housing Allowance Apply To?
The scheme applies to new claimants who's
claim begins on or after 7 April 2008, existing claimants who
change address and claimants who reclaim after a break in
entitlement. The Local Housing Allowance scheme does not
affect the following:
- Tenants of Registered Social Landlords (Housing
Associations)
- Tenants of Local Authorities (Council
Tenants)
- Tenants living in hostels, caravans, houseboats
and mobile homes
- Some Supported Housing tenants (tenancies
provided by certain authorities, social landlords, charities and
voluntary organisations)
- Tenancies which commenced before 15 January
1989
- Tenancies where the rent officer judges that a
large part of the rent is for board and attendance
How Is Local Housing Allowance Calculated?
The Local Housing Allowance is based on the average rent level
for the area in which you live and the number of rooms that
your household requires. The figures are updated on a monthly
basis and the rate that applies to you will depend on the date
that your claim starts.
For confirmation of the maximum amount of
Local Housing Allowance that your household could receive,
please follow this link to the Local Housing Allowance
website.
What Happens If My Rent Is Higher Than The Local Housing
Allowance?
The maximum benefit you will receive is the Local Housing
Allowance rate for the size of your household, in your area, for
the month that your claim started. If your rent is more than
this figure, you will be expected to make up the shortfall
yourself.
What Happens If My Rent Is Less Than The Local Housing
Allowance?
If your rent is less than your Local Housing Allowance
rate, your maximum benefit is the weekly rent you pay, plus up to
£15.00 a week.
Example 1
Your Rent = £70.00
Your Local Housing Allowance Rate = £100.00
Your Maximum Housing Benefit Entitlement = £85.00
Example 2
Your Rent = £70.00
Your Local Housing Allowance Rate = £80.00
Your Maximum Housing Benefit Entitlement = £80.00
How Is Local Housing Allowance Paid?
In most cases Local Housing Allowance will be
paid into a tenant's bank or building society account, however
in cases where a tenant can prove that they would struggle
with the responsibility of paying their rent the Council can help
to make other arrangements.
Further Information
For further information on Local Housing
Allowance for Tenants and Landlords please visit the Local Housing Allowance website or
download the leaflets from our Downloadable Documents section
below.
If you have any further queries please contact
the Benefit Section on: 01900 702650.
Allerdale Borough Council
