Housing Benefit

Housing Benefit is a way of assisting people on a low income pay their rent. A tenant can apply to their local authority for assistance. As housing benefit is means tested, some tenants may have to pay part of the rent themselves.

From 7th April 2008, Housing Benefit in the private sector changed and was replaced by the new Local Housing Allowance (LHA). The changes affect how Housing Benefit is calculated and paid.

Local Housing Allowance

What is the Local Housing Allowance?

The LHA is a new way of deciding rent payments for people receiving Housing Benefit. It does not replace Housing Benefit. It is based on the rent levels for the area a person wants to live in, and on the number of people who live with them. There is no change to entitlement rules, these will still be based on a person's income, savings or proof of rent.

Why are the changes being made?

Part of the Government's agenda is to modernise public services and will help to give everyone access to decent housing. The fundamental aim of the LHA scheme is to promote:

  • Fairness

  • Choice

  • Transparency

  • Personal responsibility

  • Simplicity

How is the Local Housing Allowance calculated?

It is calculated by the Rent Service for individual areas, known as Broad Market Rental Areas, each month. It is based on the average rental figure for a particular area depending on the size of the property.

Once the Rent Service has determined the rate for an area, an individual claimant's benefit will depend on their age and size of their household

What are the rates based on?

Different LHA rates will apply in different areas. Within those areas, the rate will be based on the average rent charged by private landlords for properties of various sizes.

The size of the household will be based on the allowing one bedroom for:

  • Every adult couple

  • Every other adult who is not part of a couple

  • Any other adult aged 16 or over

  • Any two children of the same sex

  • Any two children regardless of sex under the age of ten

  • Any other child

The number of living rooms, kitchens and bathrooms is ignored for the purpose of the size criteria

What will the Local Housing Allowance rates be?

The amount of LHA will vary from month to month as it depends on local rental prices which are liable to change due to supply and demand in the rental market.

In order to find out what the current rates are, you can access the Rent Service website by clicking here 

How is it paid?

Under Local Housing Allowance, the rent is paid direct to the tenant. They will be responsible for making their own payments of rent to you. Once the claim has been assessed, the payments is normally paid to the tenants on a fortnightly basis in arrears.

What if my tenant does not pay the rent they have received?

In certain circumstances, housing benefit can be paid direct to the landlord. The Council will have the discretion to pay rent directly to you, where there is evidence the tenant would be unlikely to pay their rent or where making direct payments would be in the interest of the tenant. Each case will be looked at individually.

If there are eight weeks rent arrears are owned, the Council will arrange to make payments direct to you, unless it is not in the tenant's overriding interests to do so. However, you are encouraged not to wait for the eight week period before contacting the Council.

More Information

If you would like to find out more information regarding the Local Housing Allowance please contact The Rent Service  or your local Council's Housing Benefit Department