How to Apply for Local Housing Allowance

 

Frequently Asked Questions

• What is Local Housing Allowance?
• Who can claim LHA?
• Who cannot claim LHA?
• How do I claim LHA?
• What if I need help filling in the form?
• Who decides the LHA rates?
• How will LHA areas be decided?
• What are the rates based on?
• How many bedrooms am I entitled to?
• Where will LHA rates be published?
• Will LHA rates Change?
• How is my LHA worked out?
• How much LHA will I receive?
• What about other money I have?
• Do I need to provide proof of my rent?
• How will I be paid LHA?
• If I do not have a bank account, how do I receive my LHA?
• In what circumstances can you pay LHA direct to your landlord?
• Who can ask for the payments to be made to the landlord?
• What money do you count when you work out my benefit?
• When will my LHA start?
• What should I do if anything changes when I’m getting benefit?
• What happens if you give me too much money?
• What can I do if i think the decision is wrong?
• Where can I get help?
• If you want more information

 

What is Local Housing Allowance?

A new scheme called Local Housing Allowance (LHA) came into effect from the 7th April 2008.

Local Housing Allowance is a new way of working out Housing Benefit for people who rent from a private landlord. This scheme does not replace Housing Benefit. LHA is an allowance we give you to help you pay your rent. It is usually based on:

• who lives with you
• which area you live in
• how much money you have coming in; and
• what savings you have

Because the amount of LHA is a flat rate, you can see what the maximum amount of help is available to you when you are looking for somewhere to live.
 

Who can claim LHA?

You can claim LHA if you live in privately rented accommodation and you are:

• making a new claim for housing benefit from the 7th April 2008; and
• claiming housing benefit and move home on or after 7th April 2008.

Who cannot claim LHA?

You cannot get Local Housing Allowance if: 

• you are a housing association tenant 
• your tenancy started before 1989 
• you live in a caravan, mobile home, house boat or hostel 
• you have savings over £16,000 
• you are an asylum seeker or you are being sponsored to be in the UK 
• you live in a close relative’s household (a close relative is a parent, step-parent, parent-in-law, brother, sister, son, son-in-law, daughter, daughter-in-law, step-son, step-daughter or the partner of any of the above) 
• you are a full time student, unless you are disabled or have children or 
• you are a crown tenant (a crown tenant is a person who lives in a home under a tenancy or a licence agreement and the owner of the home is the Crown or a government department).

 

How do I claim LHA?

• If you claim Income Support, Employment Support Allowance, income-based Jobseeker’s Allowance, contribution-based Jobseeker’s Allowance or Incapacity Benefit, you will make your Housing Benefit claim at a Jobcentre Plus office using their customer management system (CMS). If you also claim Council Tax Benefit, this will be dealt with at the same time.

Jobcentre Plus will then pass your claim to us.

• If you claim Pension Credit, you will make your Housing Benefit claim at the same time as you claim your Pension Credit. If you claim Council Tax Benefit, this will also be dealt with at the same time.

The Pension Service will then pass your claim to us.

• If you are on low income, you can claim by filling in one of our claim forms and giving us the proof we need to assess your claim. You can get the form from us – see the back of this leaflet for details.

 

What if I need help filling in the form?

If you need help filling in the form you can contact us or call into any of our Customer Service Centres.You could also contact your local Citizens Advice Bureau for help. Check your local phone book for the number.

Please remember, that if you find it difficult to make a claim because you are elderly or disabled, we may be able to visit you at home. Please contact us directly for help.

Who decides the LHA rates?

The Rent Service works out Local Housing Allowance for the area you live in. The benefit you get will also depend on how many people there are in your household. For example, a person aged under 25 will receive the shared room rate whilst a couple with one child will receive the two-room rate.

How will LHA areas be decided?

Each local authority will have at least one area where a set of LHA rates will apply. These areas will now be known as Broad Market Rental Area (BMRA). Each area will include a mix of housing as well services such as shops, hospitals and schools.

What are the rates based on?

Different rates will apply in different areas. The LHA rate will be based on the mid-point of a range of rents in a certain area. LHA rates will be broken down into ‘room rates’ that will depend on how many people are in your household.

How many bedrooms am I entitled to?

The number of people who live with you is used to work out how many bedrooms you are entitled to. We do not count other rooms such as a living room, kitchen or bathroom.

The number of bedrooms you are entitled to is then used to work out which LHA rate will apply to you.

You are entitled to 1 bedroom for:

• an adult couple (married or unmarried);
• a single adult aged 16 or over;
• two children of the same sex aged under 16;
• two children aged under 10; and 
• any other child.

Where will LHA rates be published?

We will publish the rates every month on our website. You can also get them from most council offices, libraries and advice agencies.

We also encourage Job Centre Plus offices and local support groups such as Citizens Advice Bureau to publish LHA rates.

Will LHA rates Change?

Yes. Each local authority will publish the rates in their own area just before they come into force. For example, we will publish the April rates at the end of March.

How is my LHA worked out?

If you get Income Support, Employment Support Allowance, income-based Jobseeker’s Allowance or the guaranteed part of Pension Credit, you will get the full amount of your LHA after we have taken off deductions for other people who live with you – these are called non-dependants.

We work out your benefit by comparing the money you get each week with your ‘applicable amount’. Your applicable amount is what the Government says you and your family need to live on each week.

The applicable amount will be higher for some people – for example, if you are disabled or if you are a one-parent family.

When we have worked out what money you get each week, if it’s less than, or the same as the applicable amount, you will usually get the maximum benefit.

But don’t forget, if you have any non-dependants living with you we might have to make deductions from your benefit for them.

Please remember: If your income is less than, or the same as, your ‘applicable amount’, you should claim Income Support, Employment Support Allowance, Jobseeker’s Allowance or Pension Credit as you might get more help. How much LHA will I receive?

How much LHA will I receive?

The rates depend on where you live and who lives with you. We don't set these rates - they are based on local rents set by the Rent Service.

Get in touch with us or look on the website to find out the LHA rates. These rates are the maximum you may get. You may get less than the maximum rate depending on your situation.

If your rent is the same as the LHA rate, we will usually pay this to you so you can pay your rent to your landlord.

If your rent is higher than the LHA rate, (in other words, if the benefit we give you is less than you need to pay your rent) we will not pay more LHA. You will have to pay the difference yourself or move to cheaper accommodation.

What about other money I have?

Small amounts of savings and investments don’t affect your claim but you must still tell us about all your savings and investments, including current bank accounts.

You should tell us about all the bank and building society accounts that you and your partner have. Don’t forgot to tell us about any stocks and shares you have too.

Government rules say that if you (and your partner) have savings or investments of more than £16,000, you cannot get Housing and Council Tax benefit.

The only exception to this rule is if you or your partner get the guaranteed part of Pension Credit.

• If you or your partner are under 60 and have £6,000 or less, it will not affect your claim. 
• If you or your partner are under 60 and have between £6,000 and £16,000 it will affect how much benefit you get. 

For every £250 (or part of £250) you have over £6,000 we will add £1 to the money we count each week when working out your benefit. This is called “tariff income”.

• If you or your partner are over 60 and have £6,000 or less, it will not affect your claim. 
• If you or your partner are aged 60 or over, we will only use tariff income if you have between £6,000 and £16,000. 

For every £500 (or part of £500) you have over £6,000, we will add £1 to the money we count each week when working out your benefit.

Please remember to tell us about all the different kinds of income you get. If you are not sure, just check with us.

Do I need to provide proof of my rent?

Yes, we do need proof of rent. You must send us proof of how much you pay, and what services are included in your rent. Services are things like heating, water rates and meals.

• If you have a tenancy agreement, please send us the original because photocopies are not acceptable, so we can use it to work out all the details we need to process your claim.
• If you don’t have a tenancy agreement, ask your landlord to write us a letter telling us:
  • their name and address; 
  • your name and address; 
  • how much rent you pay; 
  • what services are included in your rent; 
  • how much you pay for those services 
  • what date your tenancy started; and 
  • what date you moved into your home.

How will I be paid LHA?

We pay your LHA direct to you, not your landlord. It will be paid directly into your bank or building society account. It is up to you to make sure that you pay the rent to your landlord. If you don't pay your rent, you may lose your home. This means that:

• if your rent is higher than the LHA, you will have to make up the difference

We can't pay your benefit direct to your landlord unless we decide that you may have problems paying your rent (see below). We will pay LHA direct into your bank or building society account.

You will usually receive your LHA payment every four weeks for the previous four weeks.

If I do not have a bank account, how do I receive my LHA?

If you do not already have a bank or building society account, you may have to open one. Then you will be able to arrange to pay the rent to your landlord automatically. This is called a standing order.

You can get advice about how to open and run a bank account from any bank or building society. You can also get advice from your local housing benefit office, a welfare organisation and on your local authority's website.

In what circumstances can you pay LHA direct to your landlord?

We can decide to pay benefit direct to your landlord if you:

• are likely to have problems paying your rent and if making direct payments would be in your best interest;
• have learning difficulties;
• have problems managing your finances;
• suffer from drug or alcohol addiction; or
• you owe rent for 8 weeks or more.

These are just a few examples. There may be other reasons why someone might have difficulties.

Please refer to safeguards for landlords and tenants for further information on direct payment.

Who can ask for the payments to be made to the landlord?

You, your landlord, your family or people acting on your behalf, may tell the local authority that you are finding it difficult to pay your rent, or are likely to. The local authority may also find tenants (when carrying out home visits, for example) who may find it difficult to manage money. Landlords can contact the local authority, especially if the tenant is getting into debt with their rent.
 

What money do you count when you work out my benefit?

When we are working out your benefit, we include any money you have coming in.

This includes things like:

• social security benefits;
• tax credits;
• a work pension; and
• wages.

We include the money you earn from work after money has been taken out for:

• tax and National Insurance contributions; and
• half of any money you pay into a pension fund.

If you work we will need to see:

• your last five payslips if you are paid every week; or
• your last two payslips if you are paid every month.

If you are self-employed, we usually want to see your recent accounts. If you cannot provide them, get in touch with us for more advice.

We also disregard or not include some of your wages when we work out your benefit. We do not count the first;

• £5 of the money you earn each week, if you are single;
• £10 of the money you earn each week, if you are a couple;
• £20 of the money you earn each week, if you are disabled; or
• £25 of the money you earn each week, if you are a single parent.

We also ignore things like;

• Disability Living Allowance;
• Attendance Allowance; 
• Mobility Allowance; and
• Maintenance (if you have dependant children).

These are just a few examples.

When will my LHA start?

If you qualify, we will pay your benefit from the Monday after we get your claim form. But, if you think your benefit should start earlier, you need to write and tell us:

• the date you think your benefit should start; and
• the reason why you did not claim earlier.

If you get benefit from an earlier date, it is called “backdating”. You must show that there was “good cause” why you did not claim earlier.

What should I do if anything changes when I’m getting benefit?

You should tell us straightaway if your situation changes.

This change might affect how much you get, and if you don’t tell us you may lose your benefit. If you don’t tell us about a change and we pay you too much benefit, you may have to pay it back.

You must tell us about the following changes:

Changes to the money you get

Please tell us if:

• you start or stop getting Income Support, Employment Support Allowance or Pension Credit;
• you start of stop getting any tax credits; 
• the money you or your partner gets increases or reduces; 
• the money any non-dependants get increases or reduces; or 
• there are any other changes in the money that people in your home get. 

For example, if someone starts getting Disability Living Allowance you must tell us. If you’re not sure, just check with us.
 

Changes in your home

Please tell us if;

• you change your address;
• the number of people in your home changes (for example, someone moves in, someone moves out, someone has a baby or someone dies);
• a partner comes to live with you; or
• a partner leaves.

These are just a few examples. If you’re not sure whether you need to tell us something, check with us.
 

Being away from home

Please tell us if you or your partner;

• go into hospital; or
• leave the property for longer than 13 weeks.

 

These are just two examples. If you’re not sure whether you need to tell us something, check with us.
 

Other changes we need to know about

Please tell us if:

• you, or your partner, become a student or stop being a student; or
• the amount of savings or investments you have changes.

You do not have to tell us about changes in age, for example, if one of your children becomes 11, as we will already have this information. If you are not sure whether any changes affect your benefit, tell us anyway.

What happens if you give me too much money?

If we give you too much benefit, it is called an overpayment. If there is an overpayment, we will send you a letter which tells you:

• why we gave you too much benefit; 
• how much the overpayment is; 
• if you have to pay back the amount; and 
• how you can appeal if you think it is wrong.

What can I do if i think the decision is wrong?

You cannot appeal against the LHA that the Rent Service works out.

But, if you disagree with a decision we have made in the assessment of your claim, you can ask us to look at the decision again. This is called a review. If you want more information you could also pick up our leaflet called “What to do if you disagree with a Housing Benefit or Council Tax Benefit decision” from any Customer Service Centre.

Where can I get help?

You can always phone us for help and advice. Or, you could contact your local Citizens Advice Bureau  or Welfare Rights Service. These contact details are in your local phone book.

If you want more information

If you have any questions you can phone our Housing Benefit Section. The office is open: Monday to Wednesday from 8.30am to 5pm Thursday from 8.30am to 4.30pm Friday from 8.30am to 4pm. Phone 0161 342 3708 or call in and talk to someone at one of our customer service centres.

You can also get help from the Welfare Rights Unit by phoning 0161 342 3068 and any citizens advice bureau. If English is not your first language, we can provide an interpreter who can speak to you.

Click the link for more information about our Customer Service Centres