Local Housing Allowance is financial assistance towards your rental liability, and is a new way of calculating Housing Benefit.
Anyone who rents from a Private Landlord and has a low income.
Council tenants, housing association tenants, caravan or mobile home occupiers, or those whose tenancy commenced prior to 1989. These will remain on Housing Benefit.
For existing Housing Benefit claimants there will be no change and you will remain on Housing Benefit unless you move, or have a break of one week or more in your Housing Benefit entitlement. Any new claims made after the 7 April 2008 will automatically go onto the Local Housing Allowance.
Unlike Housing Benefit, Local Housing Allowance is a set amount for each size property. It is based on the bedroom requirements for each family unit. For example, a lone parent with two children under 10 will require two bedrooms. The Local Housing Allowance rates will be published monthly so both Tenants and Landlords will know the maximum financial help that they can receive towards the rent.
The Local Housing Allowance is set by the Rent Officer Service. The rates are based on a Broad Market Rental Area.
If the accommodation is cheaper that the Local Housing Allowance you will receive the rent liability plus a maximum of £15 up to the Local Housing Allowance rate. For example - if you find a two-bed property for £100 a week, and the Local Housing Allowance is £120 per week, you will receive £115 per week. The excess £15 will not affect your entitlement to any other Benefits.
In the event that the Local Housing Allowance rate is less than the rent that you are charged it will be your responsibility to make up the difference.
There are special rules if you are single and aged under 25. You will be restricted to the Single Room rate of Local Housing Allowance.
You cannot usually get Local Housing Allowance if you are a full time student unless you are disabled or have dependant children.
Local Housing Allowance will be paid to the Tenant. It will be paid direct into a bank account. Tenants can no longer opt to have their Local Housing Allowance direct to their Landlord unless they feel they are unable their financial affairs. In this case they can apply under the Safeguard Policy to have their Local Housing Allowance paid direct to their Landlord. Any decision under the safeguard Policy will be regularly reviewed.
Local Housing Allowance is always paid in arrears.
The Local Authority is liaising with Local Banks and have produced a leaflet detailing basic bank accounts, and the requirements of each Bank. They are also working closely with CAB and other advice organisations locally. If you have problems opening a bank account please contact your local Council for assistance.
The Safeguard Policy is there to ensure that peoples tenancies are not put at risk. It covers various scenarios, including those people with learning difficulties, those people that have existing debt problems, those people that have mental or emotional ill-health, people that may have addiction problems, people who do not speak English. This list is not exhaustive, and each application will be considered on it's own merit. Application forms for the Safeguard Policy are available on-line or from your Local Housing Benefit Office.
You can claim Local Housing Allowance as soon as you have a rent agreement with your Landlord. Contact your Local Council as early as possible or you risk losing Benefit. If you claim Income Support or Job Seekers Allowance you will get forms to claim Housing Benefit with your claim pack. If you do not claim Income Support or Job Seekers Allowance you can get application forms from your local Council Office or you can download the form from the internet. It is important that you provide documentary evidence of your Identity and Income and Rent when applying for Benefit.
You need to notify your local Council of any changes as soon as the change occurs. If you delay, you may risk an overpayment of Benefit which you will have to pay back.
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This page last updated: 27/03/2008