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.
Each local authority will be divided into Broad Rental Market Areas (BRMA) which will be set by The Rent Service. On a monthly basis the Rent Service will publish individual Local Housing Allowance (LHA) rates for up to 5 bedrooms in each of the BRMA areas.
It has been proposed that Royal Borough Windsor & Maidenhead will have 2 BRMAs and the LHA rate payable will depend on which area the customer lives in.
These figures will be published by the council on a monthly basis so that landlords and prospective LHA customers can find out the amount of rent the LHA will cover each month.
If a customer finds a property that they like with a rent that exceeds their LHA they will need, as they do now, to make up the difference themselves. But if a customer finds somewhere with a rent below their allowance, they will be able to keep the difference up to a maximum of £15.00 a week.
The amount of LHA is dependant on the following factors:
The number of rooms that the tenant qualifies for (the size criteria) are one bedroom for every:
Below are some examples of how many bedrooms certain households would qualify for:
1. A couple, with a 16 year old daughter, 11 year old son and two 3 year old twins would qualify for a four bedroom home.
2. A single mother, who has a 5 year old son and 3 year old daughter, would qualify for a two bedroom property.
3. A couple who live with
an elderly relative and their 7 year old daughter; will qualify
for a 3 bedroom property.