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.
Local Housing Allowance (LHA) is the new way of working out Housing Benefit for people who live in privately rented accommodation.
LHA is a flat rate allowance based on the size of the household (not the size of the property) and the area in which a person lives.
Currently the independent Rent Service has to examine every privately rented property to decide the level of rent that is eligible for Housing Benefit for each individual case. This new way of administering Housing Benefit means we no longer have to refer to the Rent Service and this means decisions on new claims can be made much quicker.
Payment of Housing Benefit under the LHA rules will normally be to the tenant, who will then pay their landlord directly.