The Local Housing Allowance (LHA) is the new name for Housing Benefits and initially the scheme will affect tenants and landlords of privately rented accommodation.  The scheme has been designed to be a fairer and simpler way of working out benefit for people on a low income.  Local Housing Allowance comes into effect on 7 April 2008.

 

*  private tenants making a new claim for Housing Benefit

*  existing claimants who change address to a private tenancy

*  claimants in privately rented accommodation who have a break in their existing claim for benefit.

 

How much LHA you may get depends on:

Who lives with you

Which area you want to live in

How much money you have coming in

What savings you have

 

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:

*  every adult couple

*  any other adult aged 16 or over

*  any two children regardless of sex aged under age 10

*  any two children of the same sex aged under 16

*  any other child.

The number of other rooms is ignored for this purpose as all tenants are entitled to these.

 

Your local council will be divided into areas (Broad Rental Market Areas) by an independent rent officer.  You can use your postcode to work out which area you live in.  LHA will pay the same amount wherever you live in your area, not the actual rent paid for the property.

This means that tenants with the same circumstances will be entitled to the same rate of LHA.  It is intended that tenants will then have the choice to trade between quality and price in their accommodation.

For example, if the actual rent is less than the LHA for the type of property the tenant needs, the tenant will be able to keep the extra money 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 here*.

A map of the BRMA which includes Leicester is available for download at the foot of this page.

 

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 disabilty premium,they will qualify for the one room rate regardless of the size of their accommodation.

 

There are no changes to the Housing Benefit entitlement rules; this is still based on a person’s financial circumstances and proof of a valid tenancy agreement.

LHA is the maximum benefit you can receive towards your rent.  The amount you will receive still depends on the money you have coming in each week, what savings you have and who else lives with you.

 

In most cases payment of LHA will be made direct to you and it will be your responsibility to use it to pay your rent to your landlord at the right time.  It is recognised however that for some  tenants managing financial affairs is a difficulty. We can decide if it may be in your interest in this case for LHA payments to be paid direct to your landlord. We will also make this decision  if we are told that you are eight or more weeks behind with your rent. We will make a decision on every case individually. At the bottom of this page there is a referral form that can be downloaded and completed by you or your representative if you think you will have difficulties managing your rent.  You will need to provide us with reasons and evidence why we should pay your landlord.

 

Please read the safeguard policy before completing the form. Each authority has a safeguard policy. Leicester City Council's safeguard policy has been decided in partnership with other district councils .

 

You can download a pdf version of Leicester's Safeguard Policy by clicking on the link at the bottom of the page. 

 

In the majority of cases LHA will be paid direct into bank accounts or by crossed cheque.  This means you will need to open a bank account if you do not have one already.  Some people may struggle with this responsibility and help will be available if required.  You can find out more information about opening a bank account here*.

 

*  you rent your property from the council

*  your landlord is a Housing Association

*  your rent has been registered as a “fair rent”

*  your tenancy started before 1989

*  your tenancy includes the provision of care, support or supervision and is provided by  local authorities, social landlords, charities or voluntary organisations

*  your accommodation is a caravan, mobile home or houseboat.

If your rent includes a substantial amount for board and attendance (eg private hostel accommodation) LHA may not apply.  This will be decided by the independent rent officer.  

 

You can find out more information about Local Housing Allowance at www.dwp.gov.uk/housingbenefit/lha* .  You can also download a tenant's or landlord's information booklet by clicking on the links at the bottom of this page

*Leicester City Council is not responsible for the content and services on external websites.