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Advice and Benefits

Local Housing Allowance

What Local Housing Allowance Is, and Who it Affects

Local Housing Allowance (LHA) was introduced nationally on the 7th April 2008 and is a new way of working out Housing Benefit claims for tenants renting accommodation from a private landlord.  It also affects tentants who already receive Housing Benefit and move to accommodation rented from a private landlord.

If you live in council accommodation or other social housing, such as Housing Association properties, LHA will not affect you - it only affects those who rent from private landlords.

Tyes of Information Used to Calculate Local Housing Allowance

LHA is not based on the property you live in, but on the following:

  • Who lives with you
  • Which area you live in
  • How much money you have coming in
  • What savings you have

In some cases, the amount of benefit you are entitled to will be affected by other things.  These can include:

  • How much your rent is
  • Whether anyone living with you is expected to contribute to your rent

Local Housing Authority Rates

We use the LHA Rates that are set by the Rent Service at the time of your claim, to calculate how much benefit you qualify for.  The rate you are entitled to may reduce, depending on your income, savings and circumstances.  You can find out the LHA rates, by clicking on this link.

Don't Forget!

You must tell us as soon as you have a change in your circumstances!  This will prevent you from losing out on benefit or prevent you from being asked to pay back an overpayment.

How Local Housing Allowance is Paid

LHA is paid directly to you the benefit claimant, and will go into your bank or building society account automatically.

If you do not have either of these types of account, you can find out more information about how bank accounts work, by clicking on the following link which will open up a free leaflet - Money Made Clear - Bank Accounts - by the Financial Services Authority, who are independent of any bank or building society.

Additional Advice

The Co-operative Bank in Regent Circus has agreed to help you by providing advice about setting up a bank account. To get their advice, please contact them by calling 01793 615061, or visit them at the branch in Regent Circus. Alternatively, you can choose to set up a basic account at your preferred bank or building society.

Where to Find Out More About Local Housing Allowance

You can access the leaflets A guide to Local Housing Allowance and A Guide to Local Housing Allowance for Landlords and Agents by visiting the National Benefit Leaflet website, at www.benefit-leaflet.org, or by clicking on the following link Local Housing Allowance Leaflets.

You can also find out more regarding LHA, by clicking on the link to look at our LHA Safeguarding Policy.

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