Introduction of Local Housing Allowance
With effect from 7 April 2008 Local Housing Allowance (LHA) was introduced nationally and changed the way Housing Benefit is calculated for private tenants.
It is applied to the calculation of Housing Benefit based on the size of the tenants property and the area they live in. The amount of LHA paid may be lower than your actual rent as it is not directly related to the rent charged. The rate of LHA that is being received will be reviewed on an annual basis.
Who will it affect?
Who will NOT be affected?
What are my room allowances?
Will the Housing Benefit increase if the rent increases?
Who it will affect?
Local Housing Allowance will only affect privately rented accommodation. Rather then referring your rent to the rent officer benefit will be based on the number of rooms required.
Who will not be affected?
Local Housing Allowance will not affect the following tenants
- Housing Association tenants
- Protected cases, for example supported housing provided by certain local authorities, social landlords, charities and voluntary organisations
- Tenancies which commenced prior to January 1989
- Caravans, houseboats and hostels
- Tenancies where part of the rent is attributable to board and attendance.
Changes to benefit payments
Payment of benefit will no longer be payable to the landlord under Local Housing Allowance except in cases where the Local Authority determines that the tenant is vulnerable. If the Local Authority makes the decision to pay the landlord it will be reviewed on a regular basis to confirm that it is still appropriate to pay the Landlord.
Payments of LHA will now be paid direct to tenants by BACs. Further information on BACs payments and bank accounts will be added to our webpage soon.
How many rooms will I be allowed?
Local Housing Allowance is based on the number of rooms in a property and the area that you live in. Below is a guide to how many rooms you will be allowed.
You will be allowed one bedroom for each of the following:
- Every adult couple
- Any other adult aged 16 or over
- Any two children of the same sex
- Any two children regardless of sex under age 10
- Any other child
From April 2011 the maximum LHA rate is that of a four bedroom rate.
The number of living rooms, kitchens and bathrooms is ignored as it is assumed that all tenants are entitled to these.
If you or your partner have an established need for, and receive regular overnight care then you may be entitled to an additional allowance for one extra bedroom providing your property has an extra bedroom used for this purpose.
From January 2012 if you are single with no dependant children and are aged under 35 you will only be entitled to the shared room rate even if you occupy something larger. The shared rate will be based on properties where the tenant has exclusive use to one bedroom and the tenancy provides for him to share the use of one or more of the following:
- A kitchen
- A bathroom
- A toilet, or
- A room suitable for living in
The above rules will not apply to single tenants who have the Severe Disability Premium in their benefit assessments. They will be entitled to one-bedroom rate of LHA regardless of the size of their property. Care leavers under 22 years old will also receive the rate of LHA for a one-bedroom property. In addition single tenants under the age of 35 who have spent 3 months or more in a specialist hostel whose main aim is to provide accommodation, care support or supervision with the aim of resettling or rehabilitating in the community, or ex offenders who are currently subject to an active MAPPA arrangement will not be subject to the restrictions.
Will the Housing Benefit increase if the rent increases?
We will review the LHA rate every year on the anniversary of the day the claim was made. The Housing Benefit will then be based upon the rate that applies for the month in which the anniversary falls, so this may mean that the Housing Benefit will increase, decrease or remain unchanged. Housing Benefit will not increase if the rent increases as the rate of LHA is based upon the claimant’s area and bedroom requirement, not the amount of rent actually charged.
The LHA may also change if there is a change of circumstances that affects the size allowance e.g. someone moves in or leaves the household.
If you are unsure about any of the information given above, please contact the benefits helpline on (01256 810680) or email: benefits@basingstoke.gov.uk.
