Introduction

Acknowledgements

Acknowledgement is given to The Department for Work and Pensions for the source material.

Crown Copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland.

Introduction to Subject

Local Housing Allowance is the way that Housing Benefit is administered for tenants renting accommodation from a private landlord.

It was introduced across Great Britain on 7 April 2008, following a series of pathfinders in 18 local authorities across England, Scotland and Wales. This pilot exercise started in October 2003.

LHA does not apply to tenants living in council accommodation or other social housing. Their benefit is calculated under separate Housing Benefit rules.

LHA is a flat rate benefit. It is based on:

• where the tenant lives
• who lives with them
• how much money the tenant has coming in
• what savings the tenant has

In some cases the amount of benefit will be affected by other things which can include:

• how much the rent is
• whether anyone living with the tenant is expected to contribute to their rent

Whether a tenant is eligible to receive a full or partial award depends upon their income, savings and proof of a valid tenancy.

The key change for landlords is that LHA will be paid directly to tenants in the first instance, except in certain circumstances. Tenants will not be able to ask the Local Authority to make payments to landlords, as they were able to under the old Housing Benefit Rules.

The following sections give an overview of LHA. For more detailed information, please see the DWP guidance manual in the Additional Resources section –

Housing Benefit Local Housing Allowance Guidance Manual

LHA Direct - search for rates in your area

This has been set up by the Rent Service. Includes a facility to help calculate bedroom entitlement, search for LHA rates by Local Authority and search for LHA rates by post code. A link is contained in the Additional Resources section.

Legislation

• Welfare Reform Act 2007
• Housing Benefit (Local Housing Allowance and Information Sharing) Amendment Regulations 2007
• Rent Officer (Housing Benefit Functions) Amendment Order 2007
• Housing Benefit (Local Housing Allowance, Miscellaneous and Consequential) Amendment Regulations 2007
• Welfare Reform Act 2007 (Commencement no 4 and Savings and Transitional Provisions) Order 2007
• Housing Benefit (State Pension Credit)(Local Housing Allowance and Information Sharing ) Amendment Regulations 2007
• Housing Benefit (Amendment) Regulations 2009