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Guide to LHA [Pdf / 406KB] Guide to LHA 17/3/08 3:37 pm Page 16 Market Rasen Gainsborough Louth Mablethorpe Lincoln Alford Horncastle Woodhall Spa Skegness Coningsby LINCOLNSHIRE Sleaford Boston Grantham Spalding Bourne Stamford A Guide to Local Housing Allowance Guide to LHA 17/3/08 3:37 pm Page 1 CONTENTS The New Rules for Housing ......3 The size of my ..........................10 Benefit From 7th April 2008 household has changed, what will happen to my Why has LHA been ....................3 Housing Benefit? introduced? I would like my Housing ..........10 What is LHA?..............................4 Benefit to be paid to my Who will LHA apply to? ............4 Landlord, is this possible? I am already receiving................4 I don't have a ............................11 Housing Benefit. Will bank account? my benefit change? What if I consider I ..................12 How will LHA work? ..................5 am unlikely to pay my rent? Broad Rental Market Areas ......5 Who decides if we may............13 Number of Rooms ......................6 pay the Landlord? Which rate applies to me? ........6 Making a decision ....................13 I am a joint tenant ......................7 Reviews and appeals ..............14 how much will I get? I don't agree with the ..............14 My rent is higher ........................7 LHA rate, can I appeal? than the LHA? Do I still have to tell ................14 My rent is lower than ................8 you about all my the LHA? income and savings? If my rent increases, ..................8 Where can I get ........................15 will my Housing Benefit? more advice? I have asked for my....................8 Local Authority Contact ..........16 claim to be backdated, Details which rate of LHA will my claim be based on? I am moving to a new ................9 home. How can I find out what my maximum Housing Benefit will be? - 2 - Guide to LHA 17/3/08 3:37 pm Page 2 The New Rules for Housing Benefit From 7th April 2008 Housing Benefit from the 7th This will apply to anyone making April 2008, will be paid based a new claim for benefit or on a standard rate of benefit changes address in the rented dependant on the size of your sector from a private landlord. household and not the amount of rent you are charged or the This new scheme will be called size of the property you rent. Local Housing Allowance (LHA). Why has LHA been introduced? LHA has been introduced to increase responsibility, place choice firmly in the hands of tenants and help develop the skills to make the transition into work. The objectives of introducing LHA are: to pay similar amounts to tenants with Fairness similar circumstances. to allow you to choose between price and Choice quality of the accommodation you rent. it is easier for you and landlords to find out Transparency how much rent could be covered by Housing Benefit, before you actually commit to a tenancy. Personal making you take responsibility for budgeting responsibility for, and paying, your rent. to encourage you to have your Housing Benefit payments paid into a bank account Financial inclusion and set up a standing order to pay the rent to your landlord. Improved a simpler system helps to speed up the administration and administration of housing payments giving reduced barriers you more confidence when starting a job that to work any in-work benefit will be paid quickly. - 3 - Guide to LHA 17/3/08 3:37 pm Page 3 What is Local Housing tenants in privately rented Allowance? accommodation. It will not apply We will not always cover all the to tenants of a Housing rent with Housing Benefit, we will Association or tenants in work out a maximum amount of caravans or mobile homes. Housing Benefit that the claim These groups will still have their will be calculated on. This may Housing Benefit worked out then be reduced depending on under the existing rules. If board the income and savings of the and lodging is included as part tenant. The way we assess the of the tenancy the existing rules maximum amount of Housing will also apply. Benefit is changing. The Rent Service used to decide whether I am already receiving the rent was fair or too high, and Housing Benefit. Will my the maximum Housing Benefit benefit change? was based on this Rent Officer No, see the previous answer. decision. Local Housing Allowance (LHA) is the new way If you are already receiving of working out the maximum Housing Benefit the rules will Housing Benefit anyone could stay exactly the same. If you get and will replace Rent Officer move address you will then have decisions for anyone affected by your new Housing Benefit the new rules. worked out using LHA rules. If you stop claiming Housing Who will LHA apply to? Benefit for at least one week then LHA applies to new claims for your claim will be calculated Housing Benefit received on under the LHA rules. or after 7th April 2008, from - 4 - Guide to LHA 17/3/08 3:37 pm Page 4 How will LHA work? The Rent Service will continually The maximum amount of monitor the local rent market and Housing Benefit you can receive update the LHA figures for each will be set in advance by the area every month. They may go Rent Officer. It will not depend on up or down or stay the same for the amount of rent you pay. The a person making a new claim. maximum amount you could receive will be the same for every Your local Housing Benefits office same size household in the area will be advised of these figures in which you live, regardless of every month. You will be able to differences in actual rent. tell in which area you live using your postcode. Broad Rental Market Areas The Rent Service has divided the There will be a number of country into Broad Rental Market different rates for each area Areas (BRMA). These are made up based on the number of rooms of a number of neighbourhoods. each household needs. In these area's there will be a wide mix of property types within a reasonable distance of various public amenities such as health, education, recreation, personal banking and shopping. From the information that is collected the figure that is at the mid-point of these rents will be the figure that is used as the LHA rate. - 5 - Guide to LHA 17/3/08 3:37 pm Page 5 Number of Rooms Not necessarily everyone in your The Council that is making the house is counted when working decision on your claim will out how many rooms you need. decide how many rooms, You and your partner are according to the Housing Benefit counted, as are any children rules, you will need. If you live in or young people you are one room and share some responsible for. If you have any facilities, for example a kitchen other adults who are not or bathroom, with other people boarders or lodgers they are there is a shared LHA rate. If also counted. you are under 25 and live on your own you will also receive Foster children and joint tenants this rate. are not included. If the above does not apply to Which rate applies to me? you, this is how your number of Your maximum Housing Benefit rooms will be worked out. One will be the LHA rate for the bedroom for each of the number of rooms you need in following: the area in which you live. a Couple The Rent Service and your someone who is 16 or over Council will publish the LHA two children of the same sex two children who are younger rates each month. The rate that than 10 will apply to your claim will a child (someone under 16) depend on your date of claim. This will normally be the date Each person is only counted that the Council received your once, in the first group that they claim form or the date that you would fall into. first asked to claim Housing - 6 - Guide to LHA 17/3/08 3:37 pm Page 6 Benefit, if you send the claim the single person would get the form back within one month of shared room rate and the family this date. It does not matter if the the appropriate room rate to your date your Housing Benefit is put household size. into payment is in the next month, your benefit will still be Also see the previous section based on the rate that applied 'Number of Rooms'. when you claimed. My rent is higher I am a joint tenant than the LHA? how much will I get? The maximum benefit you will If you are two single people receive is the LHA rate for your renting a property jointly, you will household size, in your area, for each receive the shared room the month in which you claim. If rate for the area you live in. your rent is more than this figure you will need to make up this If you are two families jointly shortfall yourself. If you are renting a property, then you will struggling to make this difference each receive the room rate up, you should speak to your appropriate to your household size. council about Discretionary If you are a single person and a Housing Payments family jointly renting a property - - 7 - Guide to LHA 17/3/08 3:37 pm Page 7 My rent is lower than the LHA? Your maximum Housing Benefit is the weekly rent you pay plus up to £15 a week.
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