Guide to LHA 17/3/08 3:37 pm Page 16

Market Rasen Gainsborough Louth

Lincoln Alford

Horncastle Coningsby

LINCOLNSHIRE 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?

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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.

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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

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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.

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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

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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 -

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My rent is lower than the LHA? Your maximum Housing Benefit is the weekly rent you pay plus up to £15 a week. This is the maximum amount the Government has decided can be used in a Housing Benefit calculation. Your maximum Housing Benefit will not be greater than your LHA rate.

Example: Rent £90 week LHA £120 week Maximum Housing Benefit £105 week

Example: Rent £90 week LHA £100 week Maximum Housing Benefit £100 week

If my rent increases, will I have asked for my claim my Housing Benefit? to be backdated, which Your LHA rate will be reviewed rate of LHA will my claim every year on the anniversary be based on? There are two answers to this of the day you claimed. Your question depending on whether maximum Housing Benefit will you have requested backdating then be the LHA rate that applies to a date prior to 7th April 2008. for that month, this may mean that your benefit may change. If we have decided to backdate Your maximum Housing your claim to before 7th April Benefit will not increase if 2008 then your date of claim is your rent increases. regarded as being before the

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LHA regulations came into force. I am moving to a new Therefore your maximum home. How can I find out Housing Benefit will depend on what my maximum a Rent Officer decision. You will Housing Benefit will be? only change to LHA when you You will need to find out the LHA move or if you have a break in your entitlement. rates for the area in which you are looking to move to. The local If you request backdating to a authority for the area will have date after 7th April 2008, and it is these either in their offices or on awarded, your LHA rate will be their website. based on the figures that apply for the month you have requested You will then need to work out your claim to start from. This may how many bedrooms your be different to the figures for the household needs based on the month in which you have criteria in the 'Number of Rooms' claimed. Your LHA rate will be reviewed on the anniversary of section. This is not the number the start of your claim. of rooms in the property, but the number of bedrooms your household will need. The LHA rate for that number of rooms in the area will be the maximum Housing Benefit you will receive regardless of how much the rent is.

When you move home the relevant LHA will be applied for your new property.

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The size of my I would like my Housing household has changed, Benefit to be paid to my what will happen to my Landlord, is this possible? Housing Benefit? Under LHA your Housing Benefit If somebody moves in or out will be paid direct to you into a of your household you must bank account. It will then be your tell your local authority. Your responsibility to make sure you maximum Housing Benefit then pay your rent to your will then be changed to the landlord at the right amount and correct LHA rate for your new at the right time. There are very household size. few times when we will pay your If somebody in your household benefit straight to your landlord. has a “significant birthday”, We will only do this if we for example they turn 16; your consider that you will have LHA may also have to be difficulty managing your rent, recalculated as that person may you are 8 or more weeks behind then need an extra room (See in your rent or we do not think Number of Rooms). that you will pay your rent. We will make a decision on every case individually and may ask

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you to provide us with reasons and evidence that we should pay your landlord. If you would like more help with this contact your Council or Citizens Advice Bureau.

I don't have a bank account? We will ask for your bank details in order to pay you your Housing Benefit. If you do not have a bank account you will need to open one. You can contact your Council and ask for our leaflet 'A Tenants Guide To Paying your Rent, Basic Bank Accounts and Money Advice' or The Citizens Advice Bureau will be able to give you advice and information about how you do this. You will then be able to set up a standing order with your landlord to pay your rent. This is a simple way of making sure your rent gets paid every month in case you forget. If you are not able to open a bank account you will need to contact us as soon as possible.

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What if I consider I am cannot read English unlikely to pay my rent? cannot speak English There are many reasons why you are addicted to drugs, alcohol may consider you may have or gambling difficulty paying your rent. These are fleeing domestic violence may be because you fall within are a care leaver the following: are leaving prison have severe debt problems are homeless. has a recent County Court judgement against you There may be other reasons why an undischarged bankrupt someone might have difficulties, are unable to open a bank or please contact us and ask for building society account more information. have some of your Income Support or Jobseekers Allowance paid direct to the gas, electricity or water company by the Department for Work and Pensions are getting Supporting People help are getting help from a homeless charity. Or someone may have difficulty paying their rent if they: have learning difficulties have an illness that stops them managing on a day-to-day basis

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Who decides if we may welfare groups (including pay the Landlord? money advisers) In certain circumstances we may Social Services decide to pay the landlord. probation officers Jobcentre Plus There may be times when the The Pension Service Housing Benefit staff know if a homeless tenant has had difficulty in charities/organisations managing their money and may supporting people teams take action based on this rent deposit scheme knowledge. We recommend that, administrators, homelessness if you think you or your tenant or housing advice officers. may have difficulty managing your money, then please contact We will work with you in making us as soon as possible. our decision.

We must have evidence to show Making a decision that you are having difficulty Once we have collected all the managing your money and that it evidence, we will decide as quickly is in your best interest that we as possible if direct payments to pay the landlord directly. the landlord are appropriate. We Evidence should usually be in will still pay benefit while we are writing. People who can provide making our decision. evidence include: the tenant We will write to the tenant and friends and family of the explain our decision. We will also tenant write to the landlord, if he has the landlord made the application.

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Reviews and appeals way we work out the maximum If you or your landlord disagrees Housing Benefit and who we pay with our decision you can ask us this to. You still need to tell us all to look at the decision again. your income and savings details This is called a review. Or you and let us know about any can both appeal against the changes in your circumstances. decision, giving reasons why you think this decision is wrong.

I don't agree with the LHA rate, can I appeal? No, it is not possible to appeal against the LHA level. This is because the level is set for the whole BRMA and any appeal would affect people who are happy with the level.

Do I still have to tell you about all my income and savings? Yes, the way Housing Benefit is calculated using your income and savings is not changing. For more information on how Housing Benefit is worked out contact your Council. The only things that are changing, is the

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Where can I get more advice? If you want more help or advice, contact your local authority, their details can be found at the back of this leaflet.

You can also get more help from the following websites:

www.dwp.gov.uk Department for Work and Pensions

www.therentservice.gov.uk The Rent Service

www.adviceguide.org.uk Citizens Advice Bureau (CAB) Guide to LHA 17/3/08 3:37 pm Page 15

Local Authority Contact Details Local Authority Address Tel No, e-mail and web Boston Municipal 01205 314460 Borough Buildings [email protected] Council West Street www.boston.gov.uk/benefits BOSTON PE21 8QR City of Lincoln Benefits Service 01522 873355 (Customer Services) Council City Hall 01522 873382 (for help in setting up a Beaumont Fee bank account) LINCOLN [email protected] LN1 1DB www.lincoln.gov.uk/lha Housing Benefits 01507 609333 or District Council Tedder Hall 08446 609333 (low rate number) Park [email protected] or Manby [email protected] LOUTH Lincs www.e-lindsey.gov.uk/advice/benefits LN11 8UP Benefits Service 01529 414155 or District Council District Council 01522 699699 Offices [email protected] Kesteven Street www.n-kesteven.gov.uk SLEAFORD NG34 7EF South Holland PO Box 8 01775 761161 District Council Priory Road [email protected] SPALDING www.sholland.gov.uk/services/services Lincs 601.htm PE11 2XQ Benefits Service 01476 406262 District Council Council Offices (Customer Services) St. Peters Hill [email protected] www.southkesteven.gov.uk Lincs NG31 6PZ Guildhall 01427 676676 District Council Marshall’s Yard [email protected] GAINSBOROUGH www.west-lindsey.gov.uk/LHA Lincs DN21 2NA