Housing Benefit and the Local Housing Allowance

Those people renting from a private landlord and changing address or making a new Housing Benefit claim will have their benefit calculated from the Local Housing Allowance (LHA).

Those not covered by the new LHA are:

• Council tenants
• Housing Association tenants
• Tenants with a registered ‘fair rent’
• Pre 1989 tenancies
• Tenancies provided by charitable or voluntary organisations which include care, support or supervision
• Tenants of caravans, mobile homes and house boats

For the LHA the Rent Service’s current valuations of individual accommodation will be replaced. Instead the Rent Service will set a flat rate LHA for properties in the broad market area based upon the number of bedrooms. This will form the starting point of the LHA calculation. Entitlement will still be assessed taking into account a claimant's income and personal circumstances and thus may be paid at a rate lower than the Rent Service’s figure.

The LHA for differing sizes of accommodation will be set by the Rent Service each month and the details will be publicised locally by the Housing Benefit Section. The LHA will be the rate for the month in which the claim starts. Unless there is some relevant change (e.g. the birth of a child), the LHA will be unchanged for 52 weeks.

The rate is based on how many bedrooms are required for the number of people living in the property. It allows one bedroom for:

• Every adult couple
• Any other adult aged 16 or over
• Any 2 children of the same sex aged under 16
• Any 2 children regardless of sex aged under 10
• Any other child

It is only the number of bedrooms that are counted. The number of living rooms, bathrooms, etc. are not taken into account. Therefore a single parent with a daughter aged 12 and a son aged 8 will have their benefit calculated from the LHA for three bedroom accommodation.

However - the maximum number of bedrooms that can be allowed will shortly be changing.  Even if the number of people living in the property with you, would normally mean that you would be allowed more than five bedrooms, your benefit award will be restricted to the Local Housing Allowance rate for a five bedroom property.  This is likely to be effective from April 2009.

It is intended that claimants will trade between quality and price of their accommodation.  If a claimant's rent is less than the LHA they will keep the extra money paid to them in benefit (up to a maximum of £15 per week). However, if the rent is higher than the LHA a claimant will have to make up the extra themselves.

Payment methods will also change with the introduction of the LHA.

Unless a claimant is vulnerable and will experience great difficulty managing rental payments, the LHA will be paid directly to them. If a claimant and their representative, feels they are vulnerable, benefit can be paid to the landlord. The benefit payable to the landlord will not exceed the eligible rent. If the LHA is more than the rent, the excess will be paid to the claimant.

Any request for payment to a landlord will need to be supported by evidence from a third party. Information and evidence will be considered from, amongst others :

• Social Services
• DWP
• Reputable financial institutions
• Courts
• Support or advisory services, e.g. CAB
• Doctor

Evidence from a landlord alone cannot be considered sufficient, and a decision to pay a landlord must be reviewed periodically.

Benefit can still be paid to the landlord if a tenant falls into arrears of 8 weeks or more. Written proof of arrears will be required and so landlords should ensure they keep detailed records of the rent account.


Related Links


Local Housing Allowance rates

Landlord LHA information - FAQ

Local Housing Allowance Safeguard Policy

Basic Bank Accounts

Rent Service Newsletter

Housing Benefit changes from April 2008