Local Housing Allowance - LHA

Background

Local Housing Allowance is a new scheme for people in privately rented accommodation who make a new claim for Housing Benefit on or after 7th April 2008. If you are already receiving Housing Benefit on this date these new rules will not apply to you. However. if you move address or stop claiming Housing Benefit for at least one week, we will work out your new claim under the LHA rules.

LHA replaces the old rent referral scheme with a system of Local Housing Allowances based on the area in which the tenant lives and the number of people in the household.

This new scheme will remove the need for the Rent Service to value each individual property and will mean that you can find out how much LHA you will be entitled to before you move into a property without the need to complete a Pre Tenancy Determination form.

Every property in the country will be included in a specific Broad Rental Market Area (BRMA) which shows the weekly Local Housing Allowance rates for each area.You can find out which BRMA applies to you.

Local Housing Allowance will be paid to the tenant into a bank account. If you do not have a bank account you will need to a open a new account. Details about basic bank accounts can be found on the Financial Services Authority website.

There are a few occasions where LHA can be paid to a landlord. these include:

• If you are eight or more weeks behind with your rent
• If we think that you will have difficulty paying your rent
• If we think that you will not pay your rent

We can also consider paying your landlord if you think that you will have difficulty with these arrangements. You will need to contact us to discuss this, or you can download the application form, Direct Payments of Housing Benefit to your Landlord. You will need to provide supporting evidence.

Further details about Local Housing Allowance can be found on the Benefit Leaflets website.  Or you can visit the DWP website.

Alternatively you can get further information from any of our contact centres in Droitwich, Evesham and Pershore or contact us.

Housing Benefit is changing from 01 January 2012 for single people aged 25 to 34 who rent from a private Landlord.

What will the changes mean?

From 1st January 2012 single people aged from 25 to 34 will only be entitled to the Housing Benefit shared accommodation rate. By single people we mean someone who is not living:

• as a couple
• with dependant children.

The shared accommodation rate is based on the level of local rents for properties that are not self contained. This usually means that there is a shared

• kitchen
• bathroom
• toilet or
• livingroom                                                                                                                                       

If you already get Housing Benefit at the one bedroom rate your Housing Benefit may go down if you move to the shared accommodation rate.

If your Housing Benefit is paid directly to your landlord, the amount your landlord gets for your rent could go down.

If you are getting, or thinking of claiming Housing Benefit, you need to consider this change before you renew or make a new tenancy agreement with a private landlord.

Who will the changes affect?

These changes will affect you if you:

• rent accommodation from a private landlord
• already get Housing Benefit, or are going to make a new claim
• are single
• do not normally have children living with you
• are under 35 years old
• live in a self contained property

These changes will not affect you if you:

• rent from a local authority or housing association.
• are aged under 22 and have been in care.
• live in supported housing provided by a housing association, registered charity, voluntary organisation or a county council (in England).
• get the severe disability premium in your benefit because you are entitled to the middle or higher rate care component of the Disability Living Allowance.
• need an extra bedroom for a carer who provides you with the overnight care you need but who doesn’t normally live with you.
• have spent at least three months in a
• homeless hostel or hostel specialising in rehabilitating and resettling within the community. To benefit from this exemption you need to have been offered and accepted support services to enable you to be rehabilitated or resettled in the community.
• are managed under active multi-agency management under the Multi Agency Public Protection Arrangements.

When will the changes affect me?

If you are already getting Housing Benefit you will have been told of the changes to the Local Housing Allowance rates from April 2011. You will have been given nine months protection from these changes. You will not be affected by the change to the shared accommodation rate until the nine months has ended.

The nine months start from when your local authority carries out your first Housing Benefit yearly assessment after 1 April 2011. For example, if your yearly review was in June 2011 the change to the shared accommodation rate will not affect you until March 2012 (nine months later).

If you make a new claim for Housing Benefit before 1 January 2012, the change will affect you from your next yearly review. This will also happen if your Housing Benefit is not worked out using the Local Housing Allowance arrangements because you have been claiming Housing Benefit from before April 2008.

If you live in a privately rented home and make a new claim for Housing Benefit from 1 January 2012, the change will affect you straightaway.

Shared accommodation rates

You can find out your local shared accommodation rate using the websites below. You can also compare the shared accommodation rate with the one bedroom rate:

England: Directgov 

Scotland: Local Housing Allowance

Wales: Welsh Government | Local Housing Allowance Rates 2011

What should I do now?

You can get more information at Directgov. Directgov provides information on public services in one place including up to date information on the Housing Benefit changes.

Speak to your local authority Housing Benefit / Housing Service as soon as possible. They can help you to find out exactly how these changes will affect you and talk to you about what your options may be if you are looking for accommodation.

The Valuation Office Agency (VOA) is an executive agency of HM Revenue & Customs and holds information on Local Housing Allowance, fair rents and Council Tax. Visit their website at www.voa.gov.uk/

Citizens Advice provides a wide range of advice. To find your local Citizens Advice Bureau, look in the phone book or Yellow Pages, or visit their website at www.citizensadvice.org.uk/

Changes to Housing Benefit from April 2011 

The Government is planning to make legislation in November 2010 that will change the Local Housing Allowance rules from April and October next year. Until the legislation is in place we cannot give you specific advice as to how you might be affected but the information below is based on the announcements made by the Government.

The Changes

From 1 April 2011 the Government plans to:

end the maximum £15 weekly Housing Benefit excess that some customers can receive under the Local Housing Allowance arrangements

• remove the five bedroom Local Housing Allowance rate so that the maximum level is for a four bedroom property
• introduce absolute caps so that Local Housing Allowance weekly rates in any area cannot exceed:
  • £250 for a one bedroom property
  • £290 for a two bedroom property
  • £340 for a three bedroom property
  • £400 for a four bedroom property

• reduce all Local Housing Allowance rates so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than every 5 in 10 properties as now.

The Government also intends to make a change to help disabled people who have a carer who stays overnight but who doesn't normally live with them. The change means that your Housing Benefit will take into account the cost of an additional bedroom providing you rent a property which has a bedroom for your carer.

If you are concerned that you may not be able to afford to remain in your home, you can speak to the Housing Advice Team at Wychavon District Council, Civic Centre, Queen Elizabeth Drive, Pershore, Worcs WR10 1PT. Alternatively, you can call the Housing Advice Team on 01386 565020. To make the most of the assistance the Housing Advice Team is able to offer, it is important to seek advice as early as possible.

To explain in more detail how the changes, as announced in the Emergency Budget, are likely to effect Housing Benefit entitlement please click on the following link.

Changes to Local Housing Allowance Questions and Answers