Local Housing Allowance
Local Housing Allowance is being introduced on 7 April 2008.
Local Housing Allowance is a new way of working out new claims for Housing Benefit made after that date for tenants renting accommodation from a private landlord.
It also affects tenants already getting Housing Benefit who move into accommodation rented from a private landlord after the 7 April 2008.
If you live in council accommodation or other social housing, for example an Amber Valley Housing Ltd property, Local Housing Allowance will not affect you.
What is Local Housing Allowance (LHA)?
LHA is Housing Benefit for people on benefits or low income who rent their home from a private landlord. LHA is based on the number of rooms people are allowed, not how much the rent is. The number of rooms allowed depends on who lives with the tenant.
Who will not be affect by Local Housing Allowance?
The new rules will not apply to you if you:
- Are a council or housing association tenant
- Have a tenancy which commenced before January 1989
- Live in a caravan, mobile home, houseboat or hostel
- Live in supported housing provided by social landlords, charities or voluntary organisations, who provide care, support or supervision
- You are in board and lodging accommodation
But you may still be able to get Housing Benefit to help with your rent. See our site for further information on Housing Benefit.
How is Local Housing Allowance calculated?
The amount of LHA you can get depends on:
- Who lives with you
- What area you live in
- What money you have coming in
- What savings you have
LHA does not depend on how much rent you pay. The LHA rates may be different depending on what area you live in. These rates are set by an independent rent officer, based on local rents and these rates will be published when we receive them from the Rent Service. These rates will indicate the maximum amount of LHA you can get and you may get less than the maximum rate depending on your circumstances.
What is different about Local Housing Allowance ?
LHA will usually be paid to the claimant who will then have to pay their rent to their landlord.
Knowing the amount of LHA will let you work out what rent you can afford. So when you are looking for a property you can work out how much money you will have and rent a suitable property.
Some properties will have a rent lower than the amount of LHA you can get. If you live in one of these you can still get the same amount of LHA and you can keep the difference up to a maximum amount of £15 per week. This will not affect any other benefits you get.
What happens if I already receive Housing Benefit ?
If you already get Housing Benefit your claim will be transferred to LHA if you change address or have a break in your entitlement after 7 April 2008. If you don’t move or have a break in your claim your payments will continue as they do now.
How will Local Housing Allowance be paid ?
In most cases LHA will be paid directly to the claimant.
The Council will pay it directly into a bank or building society.
You cannot choose to have your LHA paid direct to your landlord.
If you don’t have an account you will need to open one and we can provide information to help with this.
In some exceptional cases we may be able to pay your Local Housing Allowance directly to your landlord. You will need to contact our Customer Services section to discus this further.
How do I find out more ?
If you have any questions about LHA you can email us at benefits@ambervalley.gov.uk
Or phone us on 01773 841470
Alternatively more detailed information can be found on the Department for Work and Pensions website or the Rent Service website, please see the links provided.
