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 whose
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 used to calculate your Housing
Benefit entitlement is based on the area that you live in and how
many people live in your household. The figures are
updated on a monthly basis and the rate that applies to you will
depend on the date that your claim starts. See table below for
the current LHA rates or visit the Local Housing
Allowance website for further information.
|
Local Housing Allowance - February 2010 |
| Local Housing Allowance
Category |
Broad Rental Market
Areas |
| West
Cumbria |
North
Cumbria |
| Shared Accommodation rate |
£60.00 |
£54.08 |
| 1 Bedroom rate |
£80.55 |
£85.73 |
| 2 Bedroom rate |
£96.09 |
£98.96 |
| 3 Bedroom rate |
£110.47 |
£120.82 |
| 4 Bedroom rate |
£150.74 |
£149.59 |
| 5 Bedroom rate |
£161.10 |
£159.95 |
Allow one bedroom for:
- every adult couple
- any other adult aged 16 or over
- any two children, regardless of sex, under the
age of 10
- any two children of the same sex under 16
- any other child (under 16).
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 more.
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.