Local Housing Allowance (LHA)

The way Housing benefit is worked out is changing. From 7 April 2008 Housing Benefit for tenants who rent from a private landlord will be calculated using the Local Housing Allowance (LHA) for the size of property you need.

Who will not be affected by LHA?

The new rules will not apply to:
• Local Authority tenants
• Tenants with registered social landlords such as Housing Associations.
• Tenants who have a registered or 'fair' rent
• Tenancies that commenced before January 1989
• Tenancies for caravans, houseboats or hostels
• Tenancies where the Rent Officer decides that a substantial part of the rent is for board and attendance such as hotel accommodation
• Tenants currently in receipt of Housing Benefit unless they move or have a break in their claim.

Who will be affected by LHA?

Local Housing Allowance will affect tenants who are not currently receiving Housing Benefit and make a claim on or after 7 April 2008.
If you are already receiving Housing Benefit you will only be affected if you:
• Change your address
• Have a break in your claim

How does LHA work?

LHA will be based on the number of bedrooms a household needs.
The Rent Service will set the rate for each property size according to the number of bedrooms.
These rates will be published each month on this web site and at all our area offices.

What rate of LHA am I entitled to?

LHA will be based on the number of bedrooms a household needs.
This reflects the way that properties are usually advertised.
One bedroom will be allowed for each of the following:
• a single adult
• every adult couple (same or opposite sex)
• any other person aged 16 or over
• any two children of the same sex aged under 16
• any two children regardless of sex under age 10
• any other child
The number of living or other rooms is no longer taken into account. The rate of LHA will be based on bedrooms only.
Example 1: a couple with a son age 8 and daughter age 6 will be entitled to a property with 2 bedrooms (1 for the couple and 1 for the children)
Example 2: a single parent with a son age 14 and daughter age 9 will be entitled to a property with 3 bedrooms (1 for single adult, 1 for son and 1 for daughter)

How much will I actually receive?

The LHA rate is the maximum amount of benefit you can receive.
The actual amount you receive will depend on:
• Who lives with you
• What money you have coming in
• What savings you have
• How much rent you pay

What if the LHA rate is higher then my rent?

• If your rent is lower than Local Housing Allowance you will be able to keep up to £15 of the excess.
For example if the LHA rate for the size of property you need is £200 a week and your rent is £195.00 your benefit will worked out on £200 a week.
You will be able to keep the extra £5 and this will not affect any other social security benefits you get.
If your rent is the same as Local Housing Allowance your benefit will be worked out on the Local Housing Allowance Rate.
If your rent is higher than Local Housing Allowance, you will only receive the Local Housing Allowance rate. You will have to pay the difference from your other income.

Payment of LHA

• Under LHA, payment will be made directly to the tenants and not to the landlord.
• Tenants will not be able to choose to have their benefit paid to the landlord. They will be responsible for paying the rent themselves.
• We recognise there will be some tenants who may have difficulty with managing their finances.
• Enfield has developed a policy to identify these tenants.
• You should contact us if you feel you fall into this category.
• Landlords can also contact us if they feel this applies to their tenant or if there is rent arrears of more than 8 weeks.
For speed and safety your Housing Benefit will be paid direct into your bank account. If you do not already have a bank account you may want to open one, for further advice visit the FSA website for a guide to basic bank accounts. That way you will be able to pay your rent to your landlord by direct debit or standing order.

Local Housing Allowance Rates

Current room rates
Previous room rates

Useful links

Local Housing Allowance – Frequently Asked Questions. To view all questions asked regarding LHA, type in ‘LHA’ in the ‘Enter Keyword Search Criteria’. and then search.
Department for Work and Pensions www.dwp.gov.uk The Rent Service www.therentservice.gov.uk
The Financial Services Authority www.moneymadeclear.fsa.gov.uk
LHA Information for Claimants leaflet (pdf)
LHA Information for Private Landlords (pdf)
National Benefit Leaflets – http://www.benefit-leaflets.org/lha/home.asp
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This document was last updated on 2008-05-14 17:23:44 published by the Revenues and Benefits team. Document Reference:LBE_131989