Local Housing Allowance

Housing Benefits is getting better!

From April 2008 a new form of Housing Benefit (HB) called Local Housing Allowance (LHA) will be introduced.

LHA will apply to most new claims and changes of addresses from tenants of the private landlords made on or after 7th April 2008. Claims that exist before 7th April 2008 will remain entitled to housing benefit under the current provisions until such time as the

• award comes to an end and a new claim is made, or
• claimant has a change of address

• Information for Tenants
• Information for Landlords
• Local Housing Allowance Rates
• Application for Direct Payment to Landlord
• Local Housing Allowance Safeguard Policy

What is Local Housing Allowance?

LHA is a new way of working out HB for private sector tenants who are on low income. LHA rates will be based on the number of rooms people are allowed and not on how much the actual rent is. Under LHA the maximum amount paid to tenants would be based on the size, composition and location of the household. Also in most cases payments will be issued directly to tenants rather than the landlords.

The main aims of the LHA scheme are:

• Fairness: Under LHA the maximum amount paid to tenants would be based on the size, composition and location of the household. Therefore two households in similar circumstances in the same area would be entitled to the same amount of benefits.
• Choice: LHA encourages tenants to take on greater responsibility and choose how to spend their income in a similar way to other tenants who are not in receipt of benefits.
• Transparency: The current link between Housing benefits & individual rent is complex.  It does not state clearly what level of support is available for people on low income.  A clear and transparent set of allowance rates will enable tenants and landlords to know the maximum HB is available from the state.
• Personal responsibility: The Government believes that, where possible, LHA should be paid to tenants, as are most other benefits and tax credits, empowering people to budget and pay their rent themselves. This will develop skills unemployed tenants need to move back to work.
• Financial inclusion – Ideally, we want people to have their housing payments paid into a bank account and to set up a standing order to pay the rent to their landlord.
• Improved administration and reduced barriers to work: A simpler system will speed up administration of housing benefits. Also a transparent system may encourage people to move area to seek employment opportunities.

Application for Direct Payment to Landlord

Application for Direct Payment to Landlord - Word format 77Kb

Application for Direct Payment to Landlord - PDF format 56Kb

Application for Direct Payment to Landlord - Plain Text format 187Kb

LHA Safeguard Policy

LHA Safeguard Policy - Word format 106Kb

LHA Safeguard Policy - PDF format 94Kb

LHA Safeguard Policy - Plain Text format 1.2Mb