Local Housing Allowance (LHA)
What is Local Housing Allowance?
The Local Housing Allowance (LHA) scheme was introduced nationally on 7th April 2008 to replace the existing Housing Benefit scheme for tenants in privately rented accommodation. The scheme is designed to be a fairer and simpler way of working out benefit for people on a low income.
LHA is a set rate decided upon by the Valuation Office based on the area that you live in, known as a Broad Rental Market Area (BRMA). Stafford Borough Council is currently covered by three BRMA's: Mid Staffs, Staffordshire North and Salop. This link to the LHA website will allow you to find which BRMA covers your postcode/address and what the LHA rate would be for that area.
You will be able to know in advance of moving into your property what the maximum amount of benefit is that you can get. It is intended to give you the tenant all the information you require to make a decision regarding the properties, which you can afford to choose to live in.
For example: If the rent for the property is less than the LHA for the type of property you need you will be able to keep the extra money, up to a maximum of £15 per week. However, if the rent for the property is higher than the LHA you will have to pay the difference.
Why is LHA being introduced?
The Government is trying to simplify the benefits system. LHA is intended to make the scheme fairer, give more choice to tenants and be simpler to administer meaning that claims are decided more efficiently.
Who will it affect?
- Tenants in privately rented accommodation making a new claim for benefit
- People who change address and claim benefit at a new address
- Certain changes in circumstances may also mean tenants who were formerly on Housing Benefit may go onto LHA
If you are an existing Housing Benefit claimant you do not need to take any action, as your Housing Benefit will remain in payment until you have a change in your circumstances.
Who won't it affect?
LHA will not affect you if:
- Your tenancy start date is before 1989
- You rent from a Housing Association
- You rent from Stafford and Rural Homes
- Your tenancy is protected e.g. you live in supported housing provided by social landlords or charities
- You live in a caravan, boat or hostel
- Your tenancy includes a substantial amount of board e.g. B&B
If you fall into one of the above categories your benefit will be worked out using the existing Housing Benefit scheme.
LHA Rates
The amount of LHA that a tenant receives depends on:
- Who lives in the household
- The area the property is located
- What income the household has coming in
- What savings the tenant and partner have
LHA rates are based on local rents.
Please note - depending on how much income and/or capital you and your partner have you may get less than the maximum rate.
How do I calculate my LHA rate?
LHA rates are broken down into 'room rates' that will apply depending on the number of household members occupying the property. We do not count rooms such as living rooms, kitchens or bathrooms we only count bedrooms.
To calculate the 'room rate' you require you need to count one bedroom for the following people:
- Every adult couple
- Any other adult aged 16 or over
- Any two children under the age of 10
- Any two children of the same sex aged under 16
- Any other child
We only count children if it is the place where they normally live, not if they only visit.
Same sex couples are treated in the same way opposite sex couples are if they have a civil partnership or are living together as if they were civil partners.
From 6th April 2009 any new claims made are restricted to a maximum of the 5 bedroom rate regardless of how many people live in the property.
There are special rules that can affect certain categories of people.
Under 25's - if you are single, under 25 years old and do not live with any dependants, your LHA will be based on the rate for 1 bedroom - shared accommodation.
Aged 25 and over or part of a couple - if you are 25 or over, single or part of a couple and do not live with any dependants your benefit will be based on an LHA rate for 1 bedroom - self- contained accommodation if you live in:
- A self contained property
- Shared accommodation but have 2 or more rooms (bedrooms or livings rooms) that no one else can use or you have exclusive use of one bedroom with you own toilet, bathroom and kitchen
By self-contained we mean a property where you have your own room plus your own bathroom, toilet and kitchen (of facilities to cook with).
Severely Disabled or Care Leaver - If you are severely disabled and entitled to the Severe Disability Premium or a care leaver under 22 years of age, your benefit will be based on the LHA rate for a one bedroom - self contained property regardless of the type of accommodation that you occupy.
Joint Tenants - if you are a joint tenant you will receive a rate of LHA based solely on your family (i.e you and any partner and children that live with you) plus any non-dependants, sub-tenants or boarders that you have within your household.
Click here to access your Bedroom Entitlement Calculator.
Click here to access the Quick Guide to Finding Local Housing Allowance Rates.
How do I calculate the Benefit I will receive?
1. Work out how many bedrooms you will be entitled to (see above)
2. Check the LHA rates for the area you want to live in (visit the LHA website)
3. Find out if you can get the full amount of benefit, the amount of benefit you can receive may be affected by the following:
- Any money you have coming in
- Any savings you have
- How much your rent is
- If we expect anyone living with you to pay towards your rent
- If you share paying the rent with someone else who is not your partner
For further help please see our Benefits Entitlement Calculator.
What happens if the Landlord increases my rent?
The LHA scheme does not take into account the amount of rent charged. It is based purely on bedroom requirements.
A rent increase would NOT normally be a change that would require a change in the LHA rate but we still need to be notified of any rent increases or decreases.
How will LHA be paid?
We will pay LHA straight into your bank account. If you do not have a bank account you will need to open one. A bank account allows LHA to be paid faster and more securely. You can get advice about opening a bank account from any bank or building society or see the leaflet 'Just the facts about basic bank accounts'. Alternatively you can visit the 'Money made clear' website run by the UK's financial watchdog, FSA.
As LHA is paid directly to the tenant via bank/building society it is up to the tenant to make sure that they pay their rent. If there is a shortfall between the LHA rate paid to the tenant and the rent payable you will need to make sure this is also being paid.
As a tenant you are responsible for paying your rent to your landlord. If you do not pay the rent your Landlord may apply to the Council to have it paid direct to them or take further action to recover their money.
If you are in rent arrears your Landlord may be able to go to the courts and ask that you be evicted from your home. Being evicted means:
- You will lose your home
- Your benefit may not be paid to you in the future
- You may have difficulty finding new accomodation, as your landlord is unlikely to give you a reference
- You will still have to pay the landlord you owe and possibly extra money to cover court costs
- An application for re-housing could be affected as you may be considered to have made yourself intentionally homeless
Can a Landlord be paid LHA?
Payments may be made direct to the landlord ONLY were we decide that the tenant is:
- Likely to have difficulty paying their rent
- Unlikely to pay their rent
Tenants, tenants families, someone acting on their behalf or landlords can tell the Benefits Service that they are having or are likely to have difficulty paying their rent. The Benefits Service themselves may also identify anyone they think will possibly have difficulties managing their money.
There a many reasons someone may have difficulty paying their rent, they may be someone who:
- Has severe debt problems
- Has a current County Court Judgement against them
- Is an un-discharged bankrupt
- Is unable to open a bank or building society account
- Is getting Supporting People help
- Is getting help from a homeless charity
Or someone may have difficulty paying their rent if they:
- Have learning difficulties
- Have an illness that stops them managing on a day to day basis
- Cannot read English
- Cannot speak English
- Are addicted to drugs, alcohol or gambling
- Are fleeing domestic violence
- Are a care leaver
- Are leaving prison
There may be other reasons a tenant cannot pay and we will work with them in making our decision of whether to pay the landlord or the tenant.
Making a Claim
If you wish to make a claim for Local Housing Allowance or have any queries contact the Customer Contact Centre on 01785 619478.
Alternatively you may download an application form and accompanying notes by clicking these links. (Warning these are large 16 page documents).
Further Information
Contact: Customer Contact Centre
Email: benefits@staffordbc.gov.uk
Phone: 01785 619478