Local Housing Allowance

The Local Housing Allowance (LHA) scheme has operated in Salford since July 2005 and nationally from 7 April 2008. It changed the way housing benefit is paid for people living in privately rented accommodation.

The LHA is based on the area where the claimant lives and the number of people living in their household. It is not based on the rent that they are charged by their landlord. This means that claimants with the same circumstances are entitled to the same rate of LHA.

The LHA rate is used to calculate housing benefit entitlement for most customers living in privately rented accommodation.

LHA changes from April 2011

The government has made some changes to Local Housing Allowance from April 2011 which will result in many cases in a reduction in housing benefit entitlement.

Payment of Housing Benefit

Normally housing benefit will be paid to the claimant as it is the government's intention that benefit claimants should be encouraged to take responsibility for budgeting and paying their rent themselves.

However, there are certain circumstances where we must or can use our discretion to pay housing benefit direct to the landlord which includes:

• We must pay the landlord where the claimant has rent arrears of eight weeks or more
• We must pay the landlord where deductions are being made from certain incomes such as Income Support or Job Seekers Allowance to pay off rent arrears
• Where we consider that the claimant may have difficulty managing their own affairs
• Where we consider that it is unlikely that the claimant will pay their rent
• Where we consider that paying the landlord direct will secure a new or existing tenancy as the landlord has reduced the level of rent

The claimant or landlord can ask us to pay housing benefit to the landlord but there must be reasonable grounds for us to do so. Additional information may be required or we may need to confirm information with a third party before a decision can be made about who to pay.

It is important that landlords contact the housing benefit department to report rent arrears in respect of any of their tenants who are getting Housing Benefit as soon as possible, they do not need to wait until their tenant has rent arrears of eight weeks or more.

Does the Local Housing Allowance scheme apply to all housing benefit claims?

Local Housing Allowance does not apply if:

• The accommodation is rented from the council
• The accommodation is rented from a housing association
• The tenancy is excluded from rent restrictions
• The tenancy includes the provision of care, support or supervision and is provided by a social landlord, charity or voluntary organization
• The tenancy includes substantial board and attendance
• The accommodation is a caravan, mobile home or houseboat

From April 2011 the maximum LHA rate is the four bedroom rate

From 1 April 2011, the maximum LHA rate that can be used to calculate housing benefit entitlement is the four bedroom LHA rate. However, there will be a protection period where the five bedroom rate applied prior to April 2011.

What happens if the rent is not the same as the local housing allowance rate that applies to me?

From April 2011 you can not receive any more housing benefit than the amount of rent you pay.

If your rent is higher than the Local Housing Allowance rate appropriate to your case the maximum amount of housing benefit you will receive will be the local housing allowance rate. You will need to make up any shortfall yourself or ask your landlord to reduce your rent. Or you could request a discretionary housing payment.

Who to contact

Name

Housing and Council Tax Benefit Section

Address

Customer Services
Unity House
Chorley Road
Swinton
M27 5AW
Map to this location

Email

benefitenquiries@salford.gov.uk

This page was last updated on 3 April 2012