Local Housing Allowance

Local Housing Allowance is a new way of working out new claims for Housing Benefit 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. Local Housing Allowance is being introduced on 7 April 2008.

LHA will not apply if you:

Rent your home from the council.
Rent your home from a Housing Association.
Rent your home from a Charity or Voluntary Organisation including Supported Accommodation and Social Landlords.
Live in a Caravan, Mobile Home, Houseboat or Hostel.
Your rent has been registered as a fair rent.
Your tenancy began before January 1989.

With Local Housing Allowance, your benefit is not usually based on the property you live in. It is usually based on:

who lives with you
which area you live in
how much money you have coming in
what savings you have.

In some cases the amount of benefit you are entitled to will be affected by other things. These can include:

how much your rent is
whether anyone living with you is expected to contribute to your rent

How will I get my benefit if Local Housing Allowance applies to me?

Usually you will have your benefit paid directly to you. It will be paid directly into your bank or building society account, if you have one, or by cheque.

If you do not already have a bank or building society account, you may want to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order.

You can get advice about opening and running a bank account from any bank or building society. You can also get advice from a welfare organisation such as Citizens Advice. For details of banks in Ellesmere Port and Neston, please see our "Bank Account" leaflet.

It is up to you to pay the rent to your landlord. If you don't pay your rent, you may be taken to court and evicted from the property.

Can I have my benefit paid direct to my landlord?

Your benefit is paid to you unless you are likely to have difficulty paying your rent, or it must be paid to your landlord. For more details about this, please see the link Local Housing Allowance for private tenants.

If you are worried about managing your money, ask us if we can help. In some cases we may be able to pay your rent to your landlord.

What will happen if I use my benefit for something else?

Your benefit is for you to pay your rent with. If you do not use your benefit to pay your rent, your landlord may take you to court or try to evict you and you may lose your home.

If you are a landlord:

Please follow this link for the Landlord Information Pack - LHA Questions and Answers and LHA - Private Landlord Leaflet

Changes of circumstances

If you are getting Housing Benefit and you move to a new address or other circumstances change, you should tell us straightaway. You may need to make a new claim for Housing Benefit

Why are we introducing Local Housing Allowance?

Local Housing Allowance (LHA) is the cornerstone of the Governments Housing Benefits reform programme, which aims to simplify Housing Benefit and ensure it supports the wider objectives for welfare reform.

The fundamental aims of the LHA scheme are to promote:

Fairness: LHA bases the maximum amount paid to tenants on the size, composition and location of the household. Therefore, two households in similar circumstances in the same area will be entitled to similar amount of benefits.
Choice: tenants are able to take on greater responsibility and choose how to spend their income in a similar way to tenants who are not in receipt of benefits. Like other tenants they are able to choose whether to rent a larger property, or spend less on housing and increase their available income.
Transparency: The current link between Housing Benefit and individual rents is complex and does not set out clearly what level of state support is available for people on low incomes. A clear and transparent set of allowance rates helps tenants (and landlords) know how much financial help is available from the state. Tenants are able to compare how much support is available toward their housing costs in different areas and for different property sizes.
Personal responsibility: Empowering people to budget for and to pay their rent themselves, rather than having it paid for them, helps develop the skills unemployed tenants will need as they move back into work. Currently around 40% of Housing Benefit payments in the private rented sector are made to tenants, with the remainder paid straight to landlords. The Government believes that, where possible, local housing allowance should be paid to tenants, as are most other benefits and tax credits.
Financial inclusion: Ideally, we want people to have their housing payments paid into a bank account and to set up a standing order to pay the rent to their landlord. This has the advantage of being a safe and secure method of payment and provides certainty for landlords that rent will be paid.

Where to get more information

If you want to know more about the changes and how they affect you:

Phone the Housing Benefit department on 0151 356 6789
Visit the Housing Benefit office at Ellesmere Port & Neston Borough Council, Council Offices, 4 Civic Way, or visit Neston Town Hall.
Look on our website www.epnbc.gov.uk
Email us benefits@epnbc.gov.uk
Visit www.direct.gov.uk
Visit www.therentservice.gov.uk
Visit www.dwp.gov.uk

Back to the Benefits hompage

Home of the new Vauxhall Astra

Quick Links:

Local Housing Allowance