Local Housing Allowance (LHA)

The way that Housing Benefit is paid to customers who rent private accommodation changed from 7th April 2008. The new scheme is called Local Housing Allowance (LHA) and has been in place for a number of years in some 'pathfinder' authorities in England, Wales and Scotland. 

The main aims of introducing the Local Housing Allowance (LHA) scheme are to promote fairness, choice, transparency & simplicity and personal responsibility for our customers:  

  • Fairness: LHA is designed to pay the same amount of Benefit to tenants with similar circumstances living in the same area.  (However, it is important to remember that Housing Benefit is means tested). 
  • Choice: It allows tenants to trade and choose between the quality and price of their accommodation. 
  • Transparency and simplicity: It allows tenants to find out in advance how much Benefit they will receive and complicated rent officer referrals are no longer needed.
  • Personal responsibility: As Local Housing Allowance is paid directly to tenants it encourages them to take responsibility for their own financial affairs and paying their rent themselves.
  1. What is Local Housing Allowance?
  2. Who will be affected by the Local Housing Allowance?
  3. How does LHA affect landlords?
  4. Why has LHA been introduced?
  5. When and where will LHA rates be published?
  6. How are Local Housing Allowance payments worked out?
  7. What about customers under 25?
  8. How are single customers aged over 25/ couples with no children affected?
  9. What is the length of Local Housing Allowance Awards?
  10. Will mid-year rent increases be taken into account?
  11. How will payments of Local Housing Allowance be made?
  12. Will customers have any appeal rights?
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Modified: 2008-05-28
Author: Corporate Services Editor
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