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. 

All new claims for Housing Benefit made on or after 7 April 2008 will be paid under the new LHA scheme, except for the cases listed below, who currently will not be affected by LHA:

  • Registered Social Landlord (RSL) tenancies.
  • Protected cases such as supported Housing provided by certain local authorities, registered social landlords, charities and voluntary organisations.
  • Tenancies that are excluded from current rent restrictions such as tenancies entered into prior to 15 January 1989.
  • Exceptional cases such as caravans, houseboats, tents, mobile homes and hostels.
  • Cases where the Rent Service judges that a substantial part of the rent is attributable to board and lodge, such as hotel accommodation.

Customers who move home within the borough will also be affected by LHA (this includes moving room/flat within a house).   Payments of Housing Benefit at the new address will fall into the new LHA rules even if payments were being made under the old scheme at the previous address.

Also, customers who have a break in their Benefit of a week or more will come under the new LHA scheme.

  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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