What is The Local Housing Allowance?
Local Housing Allowance is a new way of working out new claims for Housing Benefit for tenants renting accommodation from a private landlord. Local Housing Allowance is being introduced from April 7 2008 for the following cases:
Local Housing Allowance will not affect people living in council accommodation or other social housing.
How is The Local Housing Allowance Calculated?
Local Housing Allowance is calculated based on the size of the household including any non-dependants.
One bedroom is allowed for :
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every adult couple aged 16 or over,
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any other adult aged 16 or over,
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any two children of the same sex,
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any two children regardless of sex under the age of 10,
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any other child.
The number of living rooms, kitchens and bathrooms is ignored for the purposes of the Local Housing Allowance size criteria. Single claimants aged under 25 who do not have anyone living with them will be entitled to the standard rate for a bedroom in shared accommodation.
How is The Local Housing Allowance Paid?
Local Housing Allowance is normally paid direct to the claimant either by bacs or by crossed cheque. The payment is made 4 weekly in arrears. For further information on how to open a bank account, please see help with opening a bank account. If you feel you are unable to deal with managing your affairs please see information on vulnerable claimants.
Why is The Local Housing Allowance Being Introduced?
Local Housing Allowance is being 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 Local Housing Allowance are:
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 tenants (before they commit themselves to a property) and landlords to find out how much rent could be covered by Housing Benefit.
Personal responsibility – making tenants take responsibility for budgeting for, and paying, their own rent.
Financial inclusion – to encourage tenants to have their housing payments paid into a bank account and set up a standing order to pay the rent to their landlord.
Improved administration and reduced barriers to work – a simpler system helps to speed up the administration of housing payments giving tenants more confidence when starting a job that any in-work benefit will be paid quickly.
Click the links below for further information relating to the Local Housing Allowance.
Local Housing Allowance Rates
Vulnerable Claimants
Vulnerability Policy
Landlord Guidance
