Local Housing Allowance - Information for Tenants
The Local Housing Allowance (LHA) payment is a flat-rate
rent allowance determined by the Rent
Service based on both the location and the size of the
property. These figures are published at the beginning of
each month on the LHA rates
page and on information posters at local Council offices.
Payments for privately rented tenancies will now be paid
directly into your bank or building society account
rather than to your landlord (please note that the LHA cannot
be paid into a Post Office account). Therefore it is vital 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
you can open a basic bank account with the appropriate
identification. Find out more about opening a
basic Bank or Building Society Account.
Money Management advice will also be provided on request from
the Citizens Advice Bureau.
Under LHA we will pay your Housing Benefit direct to you and it
is your responsibility to make sure you pay the right amount of
rent to your landlord at the right time. There are very few times
when we will pay your benefit straight to your landlord. We will
only do this if we think you will have difficulty managing your
finances, if you are eight weeks or more behind with your rent or
if there are other special circumstances. If you consider that
payments of LHA should be paid to your landlord, you will need to
complete the form LHA -
Application for Payment of Rent to the
landlord.
Who is affected?
It is important to note that existing claims in payment before
7th April 2008 will only be transferred to the LHA scheme if
there is:
- A new claim – this will include extended payment period (EPP)
claims, as the claim will cease and a new claim will be
required.
- A notification of an existing claimant changing address to
privately rented accommodation.
Only privately rented properties (de-regulated
properties) are subject to the LHA.
You will not be affected by the changes if:
- The accommodation is rented from a housing association.
- The tenancy started before 1989.
- The tenancy includes the provision of care, support or
supervision and is provided by local authorities, social landlords,
charities or voluntary organisations. Therefore a claimant is
not exempt from the LHA scheme if they are living in a
de-regulated property and are receiving floating support or
the landlord is providing care.
- The tenancy includes substantial board and attendance, such as
hotel accommodation.
- The accommodation is a caravan, mobile home or
houseboat.
What if my rent is more or less than the Local Housing
Allowance?
If you find accommodation that is cheaper than the amount
of LHA you are entitled to, then you can keep up to £15.00 per
week of the excess. Therefore if the lone parent in the example
above manages to find a 3 bedroom flat for £140.00 per week, then
he/she will be able to keep the cap i.e.. £15.00 per week of
the difference.
If you find accommodation that is more expensive than
the LHA you are entitled to then it will be up to you to
pay the difference.
