Local Housing Allowance

Local Housing Allowance (LHA) is the new name for housing benefit for tenants in privately rented accommodation. The idea is to simplify the rules and to allow tenants more freedom - both financially and to choose where they live.

Who will be affected by Local Housing Allowance?

LHA will be used to work out housing benefit for all new claims received, except for those who fall into the categories listed below. LHA will also apply to claimants already on housing benefit if they move home and claim benefit at the new address or if they have a break in their claim of one week or more.

LHA will not apply to:

Local Authority tenants
Tenants of registered social landlords (Housing Associations)
Tenants who have a registered or 'fair' rent
Tenancies which commenced before January 1989
Protected cases such as supported housing provided by social landlords, charities or voluntary organisations
Tenancies in caravans, houseboats or hostels

How does Local Housing Allowance work?

LHA is a flat rate weekly allowance based on the size of household and the area in which a person lives. It is not based on the actual rent charged for the property. New rates for LHA are published at the beginning of each month in the reception area of Civic Offices, Borehamwood and on this Website (listed below).

Prospective tenants will now have more choice when renting a property - if they find a property they like with a rent that exceeds their LHA they will need to make up the difference themselves. But if they find somewhere with a rent below their allowance, they will be able to keep the difference up to a maximum £15.00 per week.

However, there are no changes to the housing benefit entitlement rules – this will still be based on a person’s income and savings and proof of a valid tenancy.

How many rooms can you claim for?

This depends on the number of people who live with you. For example, a single person under 25 will normally only be entitled to room rate LHA. If you live in shared accomodation you will normally be entitled to room rate LHA, regardless of your age and family status.

For everyone else with children or non-dependants the LHA rate is based on the number of bedrooms needed. One bedroom is allowed for each of the following:

Every adult couple
Any other adult aged 16 or other
Any two children of the same sex up to 15 years old
Any two children regardless of the sex under 10 years old
Any other child

For further information please visit LHA Direct website.

How will Local Housing Allowance be paid?

Payment will normally be to the tenant by BACS (direct transfer to their bank account), who will then pay the landlord. However if a tenant is in arrears with their rent by 8 weeks or more the landlord has the right to ask for direct payments.

If the tenant is unable to take the responsibility for the payment of rent then the Council will consider making the payments direct to their landlord.