What is the Local Housing Allowance?

Local Housing Allowance is a national welfare benefit, which helps people on a low income pay their rent.

Local Housing Allowance is a means tested benefit, which means that when we work out your benefit we have to take into account your income, savings and investments.

The composition of your household is also taken into account.

If you rent your home from a private landlord, you will need to claim Local Housing Allowance, which is a new type of Housing Benefit that was introduced in April 2008 and designed to be a simpler and fairer way of working out entitlement for people on a low income who live in private rented accommodation and need help to pay their rent.

You will only be affected by the change if you rent your home from a private landlord and:
• You made a new claim for Housing Benefit on or after 7 April 2008
• You have change address on or after 7 April 2008
• You have already been claiming Housing Benefit, but there is a break in your claim for one week or more.

Local Housing Allowance will not apply to:
• People who rent their home from the Council
• People who rent their home from a Registered Social Landlord or Housing Association
• People whose tenancy started before 1989 or who have a registered fair rent
• People who live in supported accommodation
• People who live in hostels, caravans and houseboats

Also it may not apply if your rent includes an amount for meals.

Your Local Housing Allowance will be calculated on the number of rooms your household needs not the number of rooms in the property or the amount of rent you are charged.

The number of bedrooms you need is based on the number, age and gender of people you have living with you.

You are allowed one bedroom for:
• A couple
• Any other adult (age 16 or over)
• Any two children under the age of 10
• Any two children of the same sex under the age of 16
• Any other child under the age of 16

The Local Housing Allowance rates will be set by the Rent Service and are available on "LHA – How much will be paid?". The Rent Service will provide rates for households that require up to five rooms.

If the Local Housing Allowance is more than your rent you are entitled to keep the difference up to a maximum of £15.00 per week. The Local Housing Allowance rate that your claim is assessed on will be the rate that was effective on the date you made your claim. This will last for one year unless your household circumstances change.

For single claimants under 25 years old there will be a "shared" rate of Local Housing Allowance that replaces the single room rent. This rate will also apply to single people over 25 and couples with no other occupiers who chose to live in shared accommodation.

If you are renting accommodation from a private landlord you can calculate the possible amount of Local Housing Allowance available to you on LHA Direct.

Payment of Local Housing Allowance

Usually you will have your Local Housing Allowance paid directly to you. It is then your responsibility to pay the rent to your landlord. If you don’t pay your rent your landlord may take action against you.

If you do not already have one, you may want to set up a bank account. That way you can pay the rent to your landlord by setting up a standing order or direct debit. You can get advice about opening and running a bank account on opening a bank account.

If you are worried about managing your money, we may be able to pay your Local Housing Allowance directly to your landlord. To request this you will need to complete a Direct Payment Decision form and a Direct Payment to Landlord form.

LHA How much will be paid?

The latest rates for Local Housing Allowance are listed here.