Local Housing Allowance (LHA) is a national scheme which will come into effect across the country from 7th April 2008. It will assist people in the private sector to meet their rent, in respect of reasonably priced accommodation.

LHA is a new way of working out new claims for Housing Benefit, for tenants renting accommodation from a private landlord.  It also affects tenants already getting Housing Benefit who move into accommodation rented from a private landlord.  N.B.  If you live in council accommodation or other social housing, LHA will not affect you.

With LHA, your benefit is not usually 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

Before making a claim, you can get an idea of how much benefit we can pay by checking the LHA rates, which are available from the Rent Service.

We will use LHA Rates determined 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.  The LHA is the maximum amount that you can receive.

You will usually have your benefit paid directly into your bank or building society account.

Any changes in circumstances relating to a claim for LHA should be made known promptly to the Local Authority, as it may affect your level of benefit entitlement.