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Housing Benefit & Local Housing Allowance

Local Housing Allowance is the new way that Housing Benefit is calculated for tenants renting accommodation from a private landlord.

It was introduced across Great Britain on 7 April 2008, following a series of pathfinders in 18 local authorities across England, Scotland and Wales. This pilot exercise started in October 2003.

LHA will not affect tenants living in council accommodation or other social housing. Their benefit will continue to be calculated under the old Housing Benefit rules.

LHA is a flat rate benefit. It is based on:

• where the tenant lives
• who lives with them
• how much money the tenant has coming in
• what savings the tenant has

Log in for detailed information on:

• Why is Local Housing Allowance being introduced?
• Who will be on the LHA?
• How much will a tenant receive?
• How is the LHA set?
• How do I find out what the Local Housing Allowance rates for my property will be?
• How often are the rates reviewed?
• How does Local Housing Allowance affect landlords?
• Who is not affected by Local Housing Allowance?
• Can LHA payments be made to the landlord?
• Why are tenants being paid directly, in the first instance?
• If I already receive direct payment for some of my tenants, will these payments stop?
• What protection exists for tenants?
• What protection exists for landlords?
• Who decides if a tenant is likely to have difficulty in paying their rent?
• Can the tenant ask for their benefit to be paid to their landlord?
• Where direct payments are made to the Landlord, how long will they go on for?
• Won’t tenants spend their Local Housing Allowance on other things?
• Won’t this discourage landlords from letting their properties to claimants?
• Can I make direct payment a condition of the tenancy?
• Discretionary housing payments
• What appeal rights do I have against a payment decision?
• What appeal rights do I have against the levels of LHA?
• Accidental (slip of the pen) errors in the LHA rates