Local Housing Allowance

What is Local Housing Allowance? 

 

  

Local Housing Allowance (LHA) is the new way of working out the maximum Housing Benefit a claimant could receive.  Anyone affected by the new rules will have their Housing Benefit worked out in the way, rather than the Rent Officer setting the level of benefit.

Local Housing Allowance will apply from 7th April, 2008.

Who is Local Housing Allowance for

 

Local Housing Allowance is for private tenants on a low income.

 

By ‘private tenant’ we mean someone who rents property or a room from a private landlord.

 

Local Housing Allowance does not apply if:

 

Your landlord is a housing association

 

Your tenancy started before 1989

 

You live in a caravan

 

You live somewhere where you are provided with care, support, meals or supervision

 

  

I am already receiving Housing Benefit.  Will my benefit change?

 

No, your benefit will stay the same.  However if you move address or stop claiming Housing Benefit for at least one week, we will work out your claim under the LHA rules.

 

 

If the size of my household changes, what will happen to my benefit?

 

If someone moves in or out of your household, you must tell us.  We will then change your maximum Housing Benefit to the correct LHA rate for the size of your household.  If someone in your household has a birthday that will affect the LHA rate (for example a child turns 16), we may also need to change your LHA rate as that person may then need an extra room (See ‘How much Local Housing Allowance will I get?’)

 

  

How much Local Housing Allowance will I get?

 

The maximum amount of Housing Benefit you can receive will be set beforehand by the Rent Officer.  It will not depend on the amount of rent you pay. 

 

At the beginning of each month the Rent Officer will set the “Room Rates” for each property size within Glasgow.  These rates are detailed in the table below and will be updated on a monthly basis.

Rates for December 2008

Size Criteria Weekly Room Rate
Shared Accommodation £ 69.23
1 Bedroom £103.85
2 Bedrooms £126.92
3 Bedrooms £150.00
4 Bedrooms £229.62
5 Bedrooms £275.77

 

The Rent Officer has based his assessment on access to the following public services within a Broad Rental Market Area (BRMA):-

 

Health, Education, Leisure, Personal Banking & Shopping.

 

The amount of LHA payable will be based on these “Room Rates”.  Each claimant will be assessed to establish the number of rooms they require, depending on the number of people in the household, including the non-dependants.  To calculate the size criteria you need to count one bedroom for the following people:

 

Every adult couple (married or unmarried)

Any other adult aged 16 or over

Any two children under age 10

Any two children of the same sex aged up to 15

Any other child

 

Each person is counted only once, in the first group that they would come into.

 

Single claimants aged under 25 years will be entitled to the standard rate for a room in shared accommodation.  This will be based on properties where the tenant has a room of their own, but shares all or some of the facilities (for example, a living room kitchen or bathroom).  This will be known as the Shared Accommodation Rate.

 

 

Reviewing the Room Rates

 

We will review your LHA rate every year on the anniversary of the day you claimed.  Your maximum Housing Benefit will then be the LHA rate that applies for that month, so this may mean that your benefit increases.

 

  

I don’t agree with the Local Housing Allowance rate.  Can I appeal?

 

No, it is not possible to appeal against the LHA rate.  This is because the level is set for the whole BRMA and any change would affect people who are satisfied with the rate.

 

 

My rent is higher than Local Housing Allowance

 

The maximum benefit you will receive is the LHA rate for the size of your household, for the month you make your claim in.  If your rent is more than this figure, you will need to make up this shortfall yourself.  If you have special circumstances see information on Discretionary Housing Payment Fund.

 

 

My rent is lower than the Local Housing Allowance

 

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 to work out Housing Benefit.  Your maximum Housing Benefit will not be more than your LHA rate.

 

Example 1

John is 38. He lives alone in a 1 bedroom flat. He is in receipt of Jobseekers Allowance.

His contractual rent is £85.00 per week.

The LHA for 1 bedroom is £80.00 per week.

John will receive a payment of £80.00 per week only.

 

Example 2

Elizabeth is 46. She lives with her daughter in a 2 bedroom flat.

She is in receipt of Income Support. Her contractual rent is £90.00 per week.

The LHA for 2 bedrooms is £95.00 per week.

Elizabeth will receive a payment of £95.00 per week.

LHA can be paid at a rate up to £15.00 above the actual rent charge.

 

Therefore Elizabeth will pay her £90.00 rent and she can keep the additional £5.00

 

NB The figures used in the above examples are solely for illustrative purposes and do not reflect the room rates set out by the Rent Officer.

 

 

How will I be paid?

 

Under LHA rules you will receive your Housing Benefit payment direct to your bank account, except in certain circumstances.  We will only pay your benefit straight to your landlord if we think you will have difficulty managing your rent, or if we do not think that you will pay your rent, this is known as a safeguard.  We will make a decision on every case individually and may ask you to provide us with reasons and evidence why we should pay your landlord.

 

Click here to view Glasgow City Council's Safeguard Policy (Final) May 2008 (PDF - 31k - 3 pages)

 

A claimant application for Safeguarding will be available here for download soon.

 

To report rent arrears please see information for Landlords later in this section.

 

 

What happens if I don’t have a bank account?

 

If you don’t have a bank account, we will pay your Housing Benefit by cheque in some circumstances although we prefer to pay into a bank account as it is safer and more efficient.

 

Scotcash Money Advice can give advice and information about how to open a bank account or alternatively a basic bank account can also be opened with Glasgow Credit Union.

 

 

Information for Landlords

 

In recognition that some tenants may struggle with the responsibility of paying the rent, some safeguards have been put in place:-

 

If the local authority considers the tenant as “vulnerable”, i.e. is likely to have difficulty in managing their affairs, or,

 

If the tenant has a history of failing to pay their rent, or,

 

If the tenant falls into 8 weeks arrears

 

The local authority can continue to pay the Housing Benefit payments directly to the landlord.

 

Landlords can report rent arrears by several means although to allow for early intervention we suggest they are reported following a failure to pay after 4 weeks.  At this stage the claimant would be interviewed in the benefits office or by home visit to assist with the decision for safeguarding

  

Click here to view Glasgow City Council's Safeguard Policy (Final) May 2008.

 

A landlord application for Safeguarding will be available here for download soon.

 

Alternatively, if you require further information on Local Housing Allowance please contact us.

 

A downloadable leaflet for landlords on Local Housing Allowance can be obtained via this link Landlord Update Leaflet 

 

A downloadable leaflet for claimants on Local Housing Allowance is available via this link A guide to Local Housing Allowance

 

Website Links

 

Department for Work & Pensions

www.dwp.gov.uk/housingbenefit/lha

 

Citizens Advice Bureau

http://www.cas.org.uk/

 

Scotcash Money Advice

www.scotcash.net

 

Glasgow Credit Union

http://www.glasgowcouncilcu.com/

 

The Rent Service Scotland

www.scotland.gov.uk/about/DD/H2/00015237/page496422697.aspx