The Government wishes to move away from the current HB system where most customers have their benefit paid directly to their landlord taking away the personal responsibility to pay their own rent, as many are unaware of how much rent is actually paid on their behalf. By paying LHA direct to the customer it ensures they take on the personal responsibility of paying the rent to the landlord and helps develop budgeting skills.

It also plays a part in the wider cross Government strategy of greater financial inclusion. The Government also believes that wherever possible LHA should be paid to customers, as is the case for most other benefits and tax credits. The main benefit to landlords is that if they do not receive the payments they cannot be asked to repay any overpayment (unless they directly caused the overpayment and could therefore be considered liable)

Therefore, normally LHA will be made to customers. However, to avoid circumstances where the customer might risk losing their home, LHA may be paid to the landlord when the customer is:

• In rent arrears of 8 weeks or more,
• If it is improbable that the customer would pay their rent.
• If the customer has difficulty managing their affairs .

An application form is available to Landlords to apply for direct payment.

Application for direct payment to landlord