• The new Local Housing Allowance (LHA) scheme will operate under the same application process as the present Housing Benefit system.
• Existing claims (those received before 7th April 2008) will only be transferred to the LHA scheme in the event of a new claim being made or if they move to private rented accommodation.
• We need your help to identify those claimants who may require assistance and those where it may be more suitable to continue to make payments directly to their landlord.

The new LHA scheme has two clear objectives:

• To simplify the benefit system;
• To encourage financial inclusion amongst people who claim benefit.

A main element of the LHA scheme is that payments for privately rented tenancies will now be paid directly into the claimants bank or building society account rather than to their landlord (please note that the LHA cannot be paid into a Post Office account). Therefore it is vital that claimants are able to open a bank or building society account.

In Bath and North East Somerset an agreement has been made with all the banks and building societies, so that claimants or their representatives can open a basic bank account with the appropriate identification. If a claimant does not have a bank or building society account, please refer to our guide which gives advice about opening a basic Bank or Building Society Account.

Money Management advice will also be provided on request from the Citizens Advice Bureau.

The intention of paying the LHA directly to a claimants own account is to encourage financial inclusion: the scheme seeks to empower them by allowing them to manage more of their own money (e.g. setting up direct debits and standing orders to pay rent and other bills). The only exceptions to this will be if a person is considered to be vulnerable (i.e. unable through situation or circumstance to manage their own money) or in significant arrears, where it would be more appropriate to make the LHA payment direct to the landlord.

The exceptions to direct payments of LHA to claimants are if the claimant is:

• Vulnerable and cannot manage their own affairs (see the Safeguard Policy - request a copy of the policy by email).
• 8 weeks in rent arrears (in accordance with Regulation 94, Housing Benefit Regulations 2006).
• Unlikely to pay their rent - i.e. has a history of non payment of rent.

Generally speaking, a vulnerable person is defined as someone who could not reasonably be expected to manage their own affairs. Examples of vulnerability could include:

• Substance Abuse/Addiction
• Medical reasons - either physical or mental health issues
• Learning Difficulties/Illiteracy
• Fleeing Violence
• Homelessness
• Leaving Prison

Please note that the above situations are not conclusive proof of vulnerability and only serve as a guide regarding claimants who may experience difficulty managing their affairs

If a claimant, landlord/agent or carer/representative believes that the LHA payment should be paid direct to the landlord as a result of vulnerability or rent arrears, a form must be completed and submitted to the Local Authority. This form should include proof of the vulnerability or arrears and will be considered on a case by case basis with reference to the Local Authority's Safeguard Policy.

Please note that the aim of this policy is to empower claimants and free them from a dependency on benefit. Therefore payments of LHA will only be made to a landlord if the above criteria is clearly met.