Local Housing Allowance (LHA)
On 7 April 2008 the government introduced changes to the way that Housing Benefit is worked out and paid for people who rent accommodation from a private landlord.
The changes are:
- Local Housing Allowance (LHA) replaced the system of using rental values for properties to decide the amount of Housing Benefit a person is entitled to and
- Payments of LHA will be made directly to the tenant rather than the landlord or agent in the majority of cases.
Not everyone will be affected by these changes.
Who will be affected?
- People who make a new claim for Housing Benefit where the date of claim is on or after 7 April 2008
- Existing Housing Benefit claimants who have a break in their claim on or after 7 April 2008
- Existing Housing Benefit claimants who change address on or after 7 April 2008.
Who will not be affected?
- Claimants who were receiving Housing Benefit before 7 April 2008 and who continue to receive it at the same address
- Council tenants and housing association tenants
- Occupiers of caravans, mobile homes and houseboats
- People living in board and lodging accommodation where a substantial amount of the rent is for meals.
For those not affected by the changes, Housing Benefit will be worked out under the existing rules.
What is LHA?
LHA is the way of working out the maximum Housing Benefit a person can get. It is based on the size of a person’s household and how many bedrooms the household needs. This rate is the same for all households with similar circumstances living in the same area. For example: a household that needs two bedrooms will have their Housing Benefit assessed using the same LHA rate regardless of where they live within the Council’s boundaries. The amount a person will actually receive will depend on their income and savings.
Once the appropriate LHA rate has been decided for a claim, Housing Benefit will be based on this figure for 12 months and then it will be reviewed.
How many bedrooms does a household need?
One bedroom is allowed for:
- Every adult who is single
- Every adult couple
- Any 2 children under the age of 10
- Any 2 children of the same sex under the age of 16
- Any other child
Most young people under the age of 25 will have their Housing Benefit assessed on the LHA rate for one bedroom in a shared house.
LHA Rates
The LHA rates are decided by The Rent Service and published at the end of each month, for the coming month. They are available in Council offices and on the Council’s website
This will help tenants who make new claims or change address to know in advance the rate that will be used in the calculation of their Housing Benefit.
Payments of LHA to tenants
Under the LHA scheme, Housing Benefit will be paid directly to the tenant rather than the landlord or agent. Payments will be made directly into bank accounts. If you do not already have a bank account, now might be the right time to open one. There are many advantages to having a bank account. You can pay your rent by standing order or direct debit and you can also have other benefits paid straight into your account.
More information about Basic Bank Accounts or Money Advice is available from the right hand downloads menu.
Payments of LHA to landlords
The Council may decide in very exceptional circumstances that Housing Benefit should be paid to the landlord or agent to safeguard a person’s home. This will be at the discretion of the Council and it is expected that this will only happen in a limited number of cases. The Council must however pay Housing Benefit directly to a landlord where a tenant is eight weeks or more in arrears with their rent.
Further information about paying Housing Benefit direct to landlords, is available in the right hand downloads menu, including:
- Information about direct payment to landlords
- Local Housing Allowance Safeguard Policy
- Download the direct payment request form
- Guidance on completing the direct payment request form
Where can I get more advice?
Further information about the Local Housing Allowance scheme can be obtained from the Benefits Team and they can be contacted in any of the following ways:
By post to: Revenue Services, PO Box 4, Lancaster LA1 1QR
By personal visit to the Customer Service Centres at Lancaster or Morecambe Town Halls between the hours of 9.00am and 5.00pm Monday to Friday
By telephoning the Benefits Team on (01524) 582965 between the hours of 9.00am and 5.00pm Monday to Friday
By fax on (01524) 582260
By email to benefits@lancaster.gov.uk
Customers with hearing difficulties who have a minicom machine can contact the Benefits Team through Typetalk on 18001 01524 582965
Local Housing Allowance (e-learning)
In addition to the above information the Council has made awareness training available via an internet based training package.
The online LHA e-learning package takes no more than 30 minutes to complete. You will need to follow the instructions on the screen to load the course and complete the access form as follows:
- Local Authority name: Lancaster City Council
- Your full name: please complete as appropriate
- Department / CAB / Landlord: please complete as appropriate
- Password: Lancs01 (the last two digits are numbers)
- LHA e-learning package
- Downloadable LHA e-learning package user guide (PDF 2.3 MB)