Local Housing Allowance from April 2008

This page provides information on Local Housing Allowance (LHA), and answers questions you might have about the new scheme.

What is LHA?

Local Housing Allowance is the new name for Housing Benefit for Private Tenants only, i.e. anyone entering into a tenancy agreement with a private landlord. It will be introduced for all new applications from April 2008.

Anybody who is already receiving Housing Benefit will only start getting Local Housing Allowance when they move house or have a long break in their current claim.

The idea is to simplify the rules and to allow tenants more freedom - both financially and to choose where they live.

LHA is a flat rate allowance based on the size of household and the area in which you live. There are no changes to the entitlement rules - entitlement will still be based on your income, savings and household and proof of a valid tenancy. Payment will normally be to you and you will then pay the landlord.

Runnymede will be divided into two Broad Rental Market Areas (BRMA). Rent Officers will set individual LHA rates for each BRMA. These will be published on our web site so that landlords and prospective LHA customers can be clear about the amount of rent that LHA will cover.

LHA rates will be based on the number of bedrooms in your property and the size and composition of your household, i.e. the number and ages of the people who live with you. You will be allowed a bedroom for each of the following:

• every adult couple;
• any other adult aged 16 or over;
• any two children of the same sex aged under 16;
• any two children regardless of sex aged under 10; or
• any other child aged under 16.

This web site will be updated soon with the LHA rates for April 2008. The Rent officer will then reset the LHA rates every month and they will be published here.

Prospective tenants will be able to shop around with their allowance. If you find a property that you like, with a rent that exceeds your LHA, you will have to make up the difference yourself. However, if you find somewhere with a rent below the LHA you will be able to keep the difference up to a maximum £15.00 per week.

If the number of people living in your household changes the LHA may change.

Who will be affected by Local Housing Allowance?

LHA will be used to work out the rent allowance for all new claims received on or after 7th April 2008, except for the cases in the 'Who will not be affected by Local Housing Allowance' below. LHA will also apply to claimants already on Housing Benefit if they move home after 7th April 2008 and claim benefit at the new address or have a long break in their claims after 7th April 2008.

Who will not be affected by Local Housing Allowance?

The new rules will not apply to:

• Local Authority tenants
• Tenants of registered social landlords (Housing Associations)
• Tenants who have a registered or 'fair' rent
• Tenancies which commenced before January 1989
• Protected cases such as supported housing provided by social landlords, charities or voluntary organisations
• Tenancies in caravans, houseboats or hostels

What happens if the landlord increases your rent?

The LHA takes no account of the actual level of rent payable. It is based purely on your room requirement. That is why if you rent somewhere cheaper than the LHA rate you can keep the difference. A rent increase would not normally be a change that would require a new LHA to be used.

How will the LHA be paid?

LHA is payable to you, the claimant.

You will no longer have the choice of direct payment to your landlord. Payments will be made four weekly in arrears.

You will have to arrange to pay your landlord. The Council will not talk to the landlord about a claim unless you have given written permission to do so.

However, if you are in arrears with your rent by 8 weeks or more the landlord has the right to ask for direct payments and in those circumstances the Council would confirm to the landlord the amount of benefit they will be paid.

Payments will normally be made by BACS (direct transfer to their bank account) so you will need a bank account. To make the payments we will need your bank account number, sort code, name on the account and the name and address of the bank. Payment into your account will mean that there are no postal delays to worry about and you do not have to wait for a cheque to clear. The money is available as soon as it arrives in your account.

If you are unable to take the responsibility for the payment of rent then the Council can make the payments direct to your landlord. However, this will only happen if there is a compelling reason to do so, such as serious illness resulting in you not being able to cope with handling your financial affairs. If you are worried about taking responsibility for paying your rent you should talk to the Council about your concerns and explain the situation.

Safeguards to protect landlords from excessive rent arrears include:

• The transfer of the payment to the landlord where the tenant has accrued 8 weeks or more rent arrears.
• Payment to the landlord in cases where the tenant is deemed vulnerable and is unable to manage their own affairs.
• Payment to the landlord when the tenant is deemed 'unlikely to pay' their rent due to a history of chronic rent arrears.

Safeguard Policy for LHA Claimants and Landlords

Application for direct payments of Local Housing Allowance to your Landlord

More information can be found on the following websites:

www.dwp.gov.uk/housingbenefit/lha

http://www.therentservice.gov.uk/

Local Housing Allowance Rates

Walton area

East Thames Valley area