Summary
This page contains information about Local Housing Allowance, who it affects and how it will be paid.
From 7th April 2008 Housing Benefit for tenants of private landlords is going to change. A newer, fairer and easier scheme is being introduced called Local Housing Allowance.
Attachments
Adobe Acrobat's portable document format (pdf). To view these files you will need to have the Adobe Acrobat Reader installed on your computer. This can be downloaded free at Adobe's web site| [External].
Local Housing Allowance Safeguards Policy (209kb pdf)|
Local Housing Allowance for Tenants (336kb pdf)|
Local Housing Allowance for Landlords (308kb pdf)|
Request for Local Housing Allowance to be paid to the Landlord (144kb pdf)|
Who will it affect?
Local Housing Allowance will only apply to the following:
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New claimants in private rented property
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Existing claimants who change address
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Existing claimants who have a break in their claim
Local Housing Allowance does not apply to you if:
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You rent from the council
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Your landlord is a Housing Association
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Your rent has been registered a fair rent
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Your tenancy started before 1989
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You live somewhere where you are provided with care, support or supervision
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You live in a caravan, mobile home or houseboat
How much Local Housing Allowance will I get?
The amount of Local Housing Allowance you will get depends on:
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Who lives with you- the number of bedrooms you need
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The area you want to live in
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How much money you have coming in
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What savings you have
Local Housing Allowance does not depend on how much rent you pay.
The number of rooms you need
The LHA is a flat rate housing allowance and the number of people who live with you will be used to work out how many bedrooms you need.
One bedroom is allowed for:
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every adult couple
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any other adult aged 16 or over
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any two children regardless of sex aged under age 10
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any two children of the same sex aged under 16
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any other child.
The number of other rooms is ignored for this purpose as all tenants are entitled to these. If you are in doubt about how many bedrooms you will be allocated under Local Housing Allowance, you can visit the
Rent Service's on line room calculator| [External Link]
Single Persons aged under 25 years
A single person aged under 25 years, who does not have a non-dependant living with them, will be entitled to the standard rate of Local Housing Allowance for a room in shared accommodation. However, this will be based on a more generous definition than the existing Single Room Rent, which limits Housing Benefit entitlement to the rate for a room in shared accommodation. The new rate will be based on properties where the tenant has the exclusive use of only one bedroom and the tenancy provides for the tenant to share the use of one or more of a kitchen, bathroom, toilet,
room suitable for living in.
A severely disabled person under 25 years and care leavers under 22 years will be entitled to the Local Housing Allowance rate for a one bedroomed self-contained property, provided they rent a property of at least that size. For those who qualify for a severe disability premium,they will qualify for the one room rate regardless of the size of their accommodation.
The area you live in/want to live in
Your local Council will be divided into Broad Market Rental Areas by the Rent Service. You can use your postcode to work out your area. You will then be able to work out from the number of bedrooms and the area you want to live in, what rate of Local Housing Allowance you would be entitled to. Local Housing Allowance will pay the same amount wherever you choose to live in your area. It is not dependant on the rent charged.
This gives tenants a choice. For example, if a tenant chooses to live in a property where their rent is less than their Local Housing Allowance entitlement they get to keep the difference up to a maximum of £15 per week. However, if the actual rent charged is greater than the LHA, the tenant will have to pay the difference to the landlord.
You can find out more about Broad Market Rental Areas by visiting The Rent Service web site at
www.therentservice.gov.uk| [external link]
How much money you have coming in/savings
The housing benefit entitlement calculation has not changed. The Benefit section will still need to have your income and savings details which will be used in the benefit calculation along with your Local Housing Allowance rate to calculate your entitlement.
How will Local Housing Allowance be paid?
Local Housing Allowance will usually be paid to the claimant who will then be responsible for paying the rent to the landlord. Local Housing Allowance will be paid by cheque or by electronic transfer into a bank. This means that claimants will need to open a bank account. If you do not already have one you can find more information about opening a bank account by telephoning Miss N Dale on (0116) 257 2746 for a leaflet or contact the Moneymadeclear website| [external link]. Help will be available to those claimants who may have difficulty with banking and budgetary issues.
Safeguards
As a tenant you may feel that you cannot cope with the responsibility of paying your rent yourself. As a landlord you may feel that your tenant cannot cope with this responsibility. The Benefits Section can decide to make payments direct to a landlord in a number of circumstances if we decide, in accordance with our 'Safeguard Policy', that you or your tenant should be classed as 'vulnerable'. Extra safeguards will also be in place for non payment of rent. More details about the Safeguard policy, how to apply for payments to be sent direct to the landlord and where to get help applying can be accessed through the attachment at the top of this page or by this Safeguards Policy link| and the Request for payments to be made to the Landlord link|.
Please note that Local Housing Allowance is only effective from 7th April 2008 and will not affect existing claimants until they move or have a break in their claim. If you are a tenant or a landlord currently receiving Housing Benefit we will automatically send you information about the new scheme.
If you are a tenant or a landlord not currently receiving Housing Benefit and would like more information, please contact Miss N Dale on (0116) 257 2746 or email nicola.dale@oadby-wigston.gov.uk|