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Local Housing Allowance FAQs

  1. What is Local Housing Allowance (LHA)?
  2. Does LHA apply to me?
  3. What is the aim of LHA?
  4. When will I be affected by LHA?
  5. Which bedroom category do I fall into?
  6. What rate of LHA will I be entitled to?
  7. Who receives my Housing Benefit payment?
  8. Do I have to receive payments of Housing Benefit?
What is Local Housing Allowance?
Local Housing Allowance (LHA) was brought in by central government on 7 April 2008 as a new way of working out Housing Benefit for tenants renting accommodation from a private landlord. LHA will not replace housing benefit – it is just a different way of calculating entitlement.
It does not affect people living in Council or other social housing such as that owned by a registered social landlord.
Does LHA apply to me?
You will not be affected by LHA if:
  • you are a council or registered social landlord (housing association) tenant; or
  • your tenancy started before 15 January 1989; or
  • you live in a caravan, mobile home or house boat; or
  • you live in a hostel; or
  • your rent includes a substantial charge for board and attendance e.g. hotel or guest house accommodation where a meal or meals are included in your rent;or
  • tenants who are already receiving Housing Benefit before April 2008 as long as they do not have a break in entitlement or change address after April 2008
What is the aim of LHA?
  • Fairness - to pay similar amounts to tenants with similar circumstances.
  • Choice - to allow tenants to choose between price and quality of accommodation.
  • Transparency - it is easier for claimants (before committing themselves to a property) and landlords to find out how much rent could be covered by Housing Benefit.
  • Personal Responsibility - Making claimants take responsibility for budgeting for, and paying their own rent.
  • Financial Inclusion - to encourage claimants to have their housing payments paid into a bank account and set up a standing order to pay their rent to their landlord.
  • Improved Administration and Reduced Barriers to Work - a simpler system helps to speed up the administration of housing payments giving claimants more confidence when starting a job that any in-work benefit will be paid quickly.
When will I be affected by LHA?
Any private tenant making a new claim for Housing Benefit on or after 7 April 2008
  • any change of address on or after 7 April 2008
  • any claim where there is a break in entitlement of a week or more on or after 7 April 2008

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Last updated : 31.08.2010, 13:58:45