Local Housing Allowance

New private tenant claims for Housing Benefit  received on or after 7 April 2008

From 7 April 2008, for some private tenants who make new claims for Housing Benefit, or for existing tenants who change address or have a break in their claim of one week or more, their claims for Housing Benefit will be calculated under a new scheme known as the Local Housing Allowance (LHA).

If you live in council accommodation or other social housing, Local Housing Allowance will not affect you

The Local Housing Allowance will not apply to tenants who:

• Pay rent to the Council or to a Registered Social Landlord.
• Pay rent registered as a ‘fair rent’
• Have a tenancy that is excluded from the current housing benefit rent restrictions (such as the pre-1989 tenancies)
• Have a tenancy deemed by the Rent Service to have a substantial part of the rent for board and attendance (such as hotel accommodation)
• Live in a caravan, mobile home, hostel or houseboat

Under this new scheme, private tenants will receive a standard allowance based on the size of their household and the area in which they live. These allowances will be published in advance so that you can find out how much rent Housing Benefit could pay before you rent a property.

Housing Benefit will normally be paid directly into a tenant’s bank/building society account. If you think that getting Local Housing Allowance payments will cause you serious problems, we may be able to pay your LHA to your landlord. We will need to decide if you are having, or are likely to have, problems managing your money and paying your rent.  Please contact our Customer Service team on 0208 356 3399 for further information and advice.

If you do not already have a bank or building society account, you may want to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order.

You can get advice about opening and running a bank account from any bank or building society. You can also get advice from a welfare organisation such as Citizens Advice.

It is up to you to pay the rent to your landlord. If you don't pay your rent, you may be taken to court and evicted from the property.

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Page updated: 23 Apr 2008