Local Housing Allowance (LHA)
Local Housing Allowance (LHA) was introduced nationally from 7 April 2008. LHA is used to calculate most private sector claims.
Local Housing Allowance
The LHA looks at the location and the size of the accommodation rather than the rent being charged. In particular the LHA rates take into account the number of bedrooms required by the claimant and their household. Claimants with similar circumstances are generally entitled to the same rate of benefit regardless of the rent they pay.
The LHA places a cap on the maximum amount of Housing Benefit claimants can receive at their actual rent plus £15, as long as this does not exceed their appropriate LHA rate. For example:
- Claimant aged over 25 lives in a 1 bedroom self contained property
- Claimant receives Jobseeker's Allowance and is entitled to full Housing Benefit
- Claimants actual rent is £100
- The appropriate LHA rate is £120
- Claimant will receive Housing Benefit of £115.
Important information
The government have made changes to the way Housing Benefit is calculated under the Local Housing Allowance (LHA) scheme. From 6 April 2009, the LHA rates have been capped at the five bedroom rate for all new claims. This means no new customers will receive the LHA rate for more than five bedrooms.
These changes mean existing claimants receiving the LHA rate of 6 bedrooms or more have also had their rate capped at five bedrooms. However, there has been transitional protection for these claimants.
|Back to topRates
The rate of LHA that is used to calculate a claimant’s Housing Benefit depends on the number of people living in the household. Further details are available in our size criteria section.
LHA rates are be set by the Valuation Office Agency each month. These rates are available on our LHA rates page.
The rates set by the Valuation Office Agency each month are the maximum amounts. The actual amount a claimant will receive depends on their income, savings and circumstances.
Housing Benefit is based on the rate of LHA that has been set that month and will be reviewed after a year unless there is a change in the claimants circumstances before that.
|Back to topMethod of payment
Housing Benefit under the LHA rules is normally paid directly to the claimant. In some circumstances we may decide to pay the landlord. Further information on the payment of Housing Benefit under LHA rules is available on our Payments section.
|Back to topClaimants unaffected by LHA
LHA rules apply to deregulated private tenancies. They do not apply to:
- Tenants who live in house boats, mobile homes or caravans
- Tenants whose landlord is a registered Housing Association
- Tenants who have regulated tenancies or registered rent
- Tenants whose rent includes a substantial sum for board and attendance
- Tenants whose landlord is a charitable or voluntary organisation who provide care support or supervision
- Tenants who pay rent to Haringey Council
Further information
Further information about LHA is available on our Frequently Asked Questions (FAQs) section.
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