What is it?
The Local Housing Allowance (LHA) is the new name for Housing Benefits and initially the scheme affects 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 came effect on 7 April 2008.
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Who is affected?
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private tenants making a new claim for Housing Benefit
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existing claimants who change address to a private tenancy
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claimants in privately rented accommodation who have a break in their existing claim
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How is LHA worked out?
How much LHA you may get depends on:
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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 room rate is currently capped to a maximum of the five bedroom rate, however this will change to the four bedroom rate from April 2011.
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The area you live in
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.
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A single person aged under 35 years, who does not have a dependant living with them, will be entitled to the standard rate of Local Housing Allowance for a room in shared accommodation. The 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:
A severely disabled person under 35 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.
Those who have been on Housing Benefit since before the introduction of the Local Housing Allowance in April 2008, and are still subject to the local reference rent rules will have their eligible rent based on the single room rent from the annual review which falls on or after 1st January 2012. This is because they will then come within the definition of “young individual” in HB regulation 2(1) for that rent officer referral.
Those who have made a claim for Housing Benefit, or who have moved since the Local Housing Allowance was introduced from April 2008, and are receiving transitional protection from the April 2011 Local Housing Allowance changes, will move to the shared accommodation rate when the transitional protection expires. For these cases the transition period runs for 9 months from the first anniversary of their claim on or after 1 April 2011.
Additional exemptions for young individuals between the ages of 25 – 35.
There are only two exemptions for young individuals between the ages of 25 – 35, these are:
• former residents of specialist hostels for homeless people
• ex-offenders who pose a risk to the public who are subject to active multi-agency management under the Multi Agency Public Protection Arrangements (MAPPA)
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How much LHA will I get?
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.
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How is it paid?
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. If your landlord has particular concerns about your situation he may contact us before your rent arrears reach eight weeks. We always make a decision on every case individually, taking into account all the information we have received. 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 .
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 is available* if required.
In order to pay your Housing Benefit directly into your or your landlords bank account, you will need to complete the BACS details form and return it to us with your other supporting evidence.
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Initially you will not be affected by the changes if:
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you rent your property from the council
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your landlord is a Housing Association
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your rent has been registered as a “fair rent”
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your tenancy started before 1989
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your tenancy includes the provision of care, support or supervision and is provided by local authorities, social landlords, charities or voluntary organisations
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your accommodation is a caravan, mobile home or houseboat.
If your rent includes a substantial amount for board and attendance (e.g private hostel accommodation) LHA may not apply. This will be decided by the independent rent officer.
*Leicester City Council is not responsible for the content and services on external websites.
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