Why is Local Housing Allowance being introduced?
The Government wants to simplify the administration of Housing Benefit. The six main principles behind the change are
Will the LHA rules be applied to all Housing Benefit claims?
No. It will only apply to private sector tenants for:
This means that all existing claims will continue to be paid under the current rules until either there is a break in entitlement or the customer moves address.
Does LHA apply to all types of tenancies?
No, it only applies to private sector tenancies. The following types of tenancies are not affected:
This list is not exhaustive. All the tenancy types listed above will continue to be referred to The Rent Service and Housing Benefit entitlement will be assessed using The Rent Service rental valuation.
What is the size criteria?
The LHA rate that is applied to a particular Housing Benefit claim depends on the size of the customer's household, excluding joint tenants and resident landlords. It therefore includes partners, children, non-dependants & their family members, sub-tenants, boarders and lodgers.
Unlike the pre-April 2008 size criteria (that is based on "rooms suitable for living in"), the LHA criteria allows one bedroom for each of the following:
The "shared accommodation" rate applies to most single customers aged under 25. It also applies to single customers aged 25 and over and couples without children if they choose to live in accommodation with shared facilities.
What happens if the LHA rate is more than my rent?
If this happens, the rent that's used in your Housing Benefit calculation will be capped to your contractual rent plus £15.00.
How does LHA affect joint tenants?
Joint tenants have the LHA rate applied to their Housing Benefit claim based on the size of their family, including any non-dependants and boarders/lodgers. A single customer (irrespective of their age) sharing facilities will receive the shared accommodation rate of LHA, subject to the £15 weekly excess limit, if the LHA rate is more than their share of the contractual rent.
Are there any "protection" rules?
The two categories of protection that are applied to pre-April 2008 claims also apply to claims assessed under the LHA rules. These are:
How long does the LHA rate last for?
Once your award of Housing Benefit has been calculated using the appropriate rate of LHA, this rate will last for 12 months unless there is a change of circumstances that results in a new rate being used (for example, a child is born and you require an extra bedroom). If there has been no change in circumstances, Housing Benefit will be re-assessed after 12 months using the prevailing LHA rate.
What happens if my claim is backdated?
The LHA rate that is applied to your benefit entitlement is the one that relates to the "date of claim". Therefore, if your claim is backdated, your entitlement must be re-assessed using the prevailing LHA rate as at the backdated "date of claim", and this then lasts for 12 months.
If your date of claim is backdated to before the beginning of April 2008 (when LHA starts), your entitlement will be assessed using pre-LHA rules.
Will all Housing Benefit claims assessed under the LHA rules be paid to the customer?
The majority of claims will be paid to the tenant. However, some tenants will be "safeguarded" and we will be able to consider paying their landlord. The following are examples of factors that may be taken into account:
This list is not exhaustive and each case will be considered on it's own merits.
What happens if Housing Benefit is paid to my landlord but the award is more than my contractual rent?
If Housing Benefit is paid to the landlord, we will generally only pay them up to the level of the rent that the tenant is liable for. The "excess" (up to the £15 per week cap) will be paid to the tenant.
However, if the tenant has arrears, we may also pay any "excess" to the landlord until the arrears are cleared.
Can I appeal against the LHA rate?
No. There is no right of appeal about the rate of LHA that has been used in the Housing Benefit calculation. This is because the LHA rate is used for all Housing Benefit claims for properties of a particular size and not one individual case. It would also undermine the transparency of the scheme, which is one of the six stated aims.
However, an appeal can be made about a Rent Service decision for a "Board & Attendance" claim (i.e. one where food is included in the rent that's charged) because these are still referred to The Rent Service.
Can I appeal about who the Housing Benefit payments are sent to?
Yes. Both the landlord and the tenant can appeal about who payments are sent to. Any appeal will need to be made in writing explaining why you think the decision that has been made is wrong.
If you have any further questions, please contact us for advice.
Alternatively, you can visit the public enquiry counter at the Town Hall from 8:45 Monday to Friday. We close at 16:45 Monday to Thursday and at 16:30 on Friday. The enquiry counter tends to be less busy on Tuesdays, Wednesdays and Thursdays.
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