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Frequently Asked Questions (FAQ) for Local Housing Allowance

Local Housing Allowance

  1. What is Local Housing Allowance (LHA)?
  2. Why has the government introduced LHA?
  3. When will LHA be implemented?

1. What is Local Housing Allowance (LHA)?

LHA has changed the way we pay Housing Benefit for private sector tenants. It is the way by which we decide the maximum amount of Housing Benefit that can be paid. The LHA is based on the location and size of accommodation required by the claimant rather than the rent being charged.

The amount of Housing Benefit that a claimant gets depends on the LHA rate that applies to them after we have taken into account their financial and household circumstances. The rules for claiming and calculating Housing Benefit under the LHA scheme are very similar to the way we calculate Housing Benefit.

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2. Why has the government introduced LHA?

Fairness: LHA is designed to pay the same amount of benefit to claimants with similar circumstances living in the same areas.

Choice: It allows claimants to choose between the quality and price of their accommodation.

Transparency and simplicity: It allows claimants to find out in advance how much benefit they will receive.

Personal responsibility: As Housing Benefit under the LHA scheme is paid directly to claimants it encourages them to take responsibility for their own finances.

Increased Incentives to work: Increases certainty about the benefits claimants could receive whilst working and helps to bridge the gap between being unemployed and taking a job.

Simplicity: We are no longer required to refer individual rents to the Rent Service and apply complex rent restrictions.

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3. When will LHA be implemented?

LHA affects every local authority that has a responsibility for administrating Housing Benefit. The Department for Work and Pensions (DWP) decided that the LHA scheme must be implemented nationally from 7 April 2008.

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LHA rates

  1. Who sets the LHA rates in Haringey?
  2. What is a Broad Rental Market Area (BRMA)?
  3. How often will the Rent Service provide information on LHA rates?
  4. How often will the rate of LHA change for an individual claim?
  5. Are the rates of LHA the same all over Haringey?
  6. How many LHA rates will there be within each BRMA?

1. Who sets the LHA rates in Haringey?

The Valuation Office Agency are responsible for setting the LHA rates. To do this the Valuation Office Agency have created Broad Rental Market Areas (BRMAs) from which they will research rent levels in that area to decide what the LHA rate will be for differently sized accommodation

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2. What is a Broad Rental Market Area (BRMA)?

The Valuation Office Agency uses the following definition to help it decide the location of a BRMA. It is an area:

  • Comprising two or more distinct areas of residential accommodation.
  • Within which a person could reasonably be expected to live having regard to the facilities and services for the purposes of health, education, recreation, personal banking and shopping, taking account of public and private transport, to and from facilities and services of the same types and similar standard, and
  • Containing residential premises of a variety of types, and including such premises held on a variety of tenancies
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3. How often will the

Valuation Office Agency

provide information on LHA rates?

Every month the Valuation Office Agency sets rates of LHA for different sized accommodation within each BRMA. The Benefits and Local Taxation Service will publish this information every month. This information is available on our website and in our Customer Service Centres.

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4. How often will the rate of LHA change for an individual claim?

In all circumstances we will review individual claims every year and change the LHA rate to the appropriate amount at that time.

We will also change the LHA rate if there is a change in the make up of the household, for example; a child reaches the age of 16 and qualifies for a bedroom in their own right.

The amount of Housing Benefit we pay is always dependant on income, savings and household make up. It is important that changes in circumstances are reported immediately to ensure that we pay the right benefit and avoid an overpayment.

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5. Are the rates of LHA the same all over Haringey?

No. The Valuation Office Agency has incorporated Haringey into two separate BRMAs. The rates for the same sized accommodation do differ across the two BRMAs. This is because they are separate areas which have their own distinctive private rental market.

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6. How many LHA rates will there be within each BRMA?

There are six separate LHA rates within each BRMA. They are:

  • one shared accommodation LHA rate
  • individual rates for one to five bedroom accommodation.

It is possible to get an LHA rate for accommodation that has more than five bedrooms from the Valuation Office Agency where such accommodations exists. If this is the case, we will include these LHA rates in our monthly publication of the LHA rates.

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Entitlement

  1. How does the council decide what sized accommodation a claimant qualifies for?
  2. What is the maximum amount of Housing Benefit a claimant can receive under LHA rules?
  3. What are childless tenants living in shared accommodation entitled to?
  4. Are there still rent restrictions on claimants aged under 25?
  5. Can childless couples or over 25s qualify for a higher LHA rate?
  6. Do the rules on shared accommodation apply to joint tenants?

1. How does the council decide what sized accommodation a claimant qualifies for?

The Housing Benefit regulations allow for the following size criteria to be used to determine the number of bedrooms that a claimant can qualify for.

One bedroom each for:

  • every adult couple (same or opposite sex)
  • any other adult (16 or over)
  • any two children under 10
  • any two children of the same sex aged 10 to 15
  • or for any other child
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2. What is the maximum amount of Housing Benefit a claimant can receive under LHA rules?

The LHA rate is the maximum amount of Housing Benefit that can be paid to a claimant who qualifies for that accommodation size. It must be remembered that Housing Benefit is means tested and is subject to deductions depending on the claimants circumstances. If a claimant is getting Income Support, Employment and Support Allowance (income related), Jobseeker's Allowance (Income Based) or Pension Credit (Guaranteed Credit) and no deductions apply, they will receive Housing Benefit at the maximum LHA rate. Otherwise Housing Benefit is adjusted to reflect the claimants circumstances.

If a claimants actual rent is below the LHA rate, they can receive a £15 top up of benefit as long as it does not exceed the LHA rate they qualify for.

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3. What are childless tenants living in shared accommodation entitled to?

There is a category of LHA for shared accommodation which is applied where a childless tenant does not have exclusive use of more than one room and shares any or all of a kitchen, living room, bathroom or a toilet.

Couples (same or opposite sex) or single claimants aged 25 or over who choose to live in accommodation where they share facilities such as toilet, bathroom, living room or kitchen will also qualify for the shared LHA rate.

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4. Are there still rent restrictions on claimants aged under 25?

Yes. Most childless single claimants aged under 25 will qualify for the shared rate whether or not they live in shared accommodation.

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5. Can childless couples or over 25s qualify for a higher LHA rate?

Yes. Couples (same or opposite sex) or claimants 25 or over who do not share their accommodation will get the one bedroom LHA rate.

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6. Do the rules on shared accommodation apply to joint tenants?

If the joint tenants are all single without children, each claimant will qualify for the shared LHA rate. Separate benefit applications will be required from each tenant.  The amount of Housing Benefit they will receive will then depend on their individual circumstances.

If a joint tenant has children then they will qualify for the LHA rate which applies to them given their household circumstances.

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Receiving Housing benefit

  1. How do claimants set up a bank account to receive Housing Benefit directly?
  2. How will tenants manage if they are unable to cope with paying rent?

1. How do claimants set up a bank account to receive Housing Benefit directly?

The council and the government are promoting the use of basic bank accounts for tenants receiving benefit. A standing order is an easy and effective way of managing money and means that there is no need to wait for cheques to clear.

The Citizens Advice Bureau (CAB) provide money advice to private tenants getting Housing Benefit and can help with budgeting and advice on managing debt. If you would like to use this service, please visit the CAB website www.citizensadvice.org.uk (See the external links section below).

You can get information on opening a bank account from the Financial Services Authority website (See the external links section below) or call 0845 606 1234. Alternatively you can download a copy of Haringey Councils ‘Basic Bank Accounts leaflet’ by going to our downloadable forms page.

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2. How do tenants manage if they are unable to cope with paying rent?

It is recognised that some claimants may struggle with the responsibility of paying their rent. The council can still make payments to landlords where we consider that the claimant has difficulty managing their financial affairs or it is considered improbable that the claimant will pay their rent.

The council is required to make payments directly to the landlord if a tenant has rent arrears of eight weeks or more.

Information about this is on the LHA Payments Page.

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Benefit claims

  1. I have had a continuous Housing Benefit claim that started before the introduction of LHA (7/4/2008). Can I claim Housing Benefit under new LHA rules?
  2. What happens if I made my Housing Benefit claim before 7 April 2008 but the Benefits and Local Taxation have not assessed my claim before this date?
  3. What happens if I make a claim on or after 7 April 2008, but request backdating prior to 7 April 2008?
  4. Who will overpayments of Housing Benefit be recovered from?
  5. Can Discretionary Housing Payments (DHP) be awarded to claimants who receive Housing Benefit under the LHA rules?
  6. What is the £15 'capping rule'?

1. I have had a continuous Housing Benefit claim that started before the introduction of LHA (7/4/2008). Can I claim Housing Benefit under the new LHA rules?

Housing Benefit assessed using the LHA rules will only apply to new claims made on or after the 7 April 2008.

If you are receiving Housing Benefit prior to the 7 April 2008 but your claim ends after this date, or you move address on or after the 7 April 2008, we will be required to assess your claim under the new LHA rules.

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2. What happens if I made my Housing Benefit claim before 7 April 2008 but the Benefits and Local Taxation Service has not assessed my claim before this date?

If you have made a claim before the 7 April 2008 but we have not managed to assess it before this date the pre LHA rules will apply.

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3. What happens if I make a claim on or after the 7 April 2008, but request backdating prior to 7 April 2008?

The LHA rules will not apply and the benefit claim will be judged to have started from the date that the claim was backdated to.

If we decide that the claim can only be backdated from a date after 7 April 2008, benefit will be assessed under the LHA rules.

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4. Who will overpayments of Housing Benefit be recovered from?

Housing Benefit regulations define from whom overpayments should be recovered. LHA has not changed these rules. The law says that:

  • If an overpayment is caused by someone failing to tell us something or by misrepresentation (deliberate or accidental), we will seek to recover the overpayment from that person whether they received the overpayment or not.
  • If an overpayment occurs due to an error by us and it is still recoverable because someone should have known they were being overpaid, we will seek to recover the overpayment from the person who should have known it.
  • Overpayments where no one is at fault must be recovered from the claimant, the partner or the landlord if Housing Benefit was paid to the landlord.
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5. Can Discretionary Housing Payments (DHPs) be awarded to claimants who receive Housing Benefit under the LHA rules?

Yes - the rules have not changed. DHPs can be awarded to those claimants whose Housing Benefit does not meet their actual rent.

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6. What is the £15 'capping rule'?

The £15 capping rule applies when the eligible rent a claimant is being charged is lower than the LHA rate the claimant qualifies for. If this is the case, the claimant will be entitled to a maximum of a £15 additional cap on their Housing Benefit, for example:

  • Claimant lives in a two bedroom flat with their partner and child
  • Claimant receives Income Support and is entitled to full Housing Benefit
  • Claimants eligible rent is £170 per week
  • Claimant qualifies for an LHA rate of £200 per week
  • Claimant will receive £170 per week Housing Benefit plus an extra £15 per week cap
  • Claimants full Housing Benefit award will be £185 per week

If the claimants actual rent was £190 per week and the LHA rate they were entitled to was £200, they would receive a £10 cap. This is because a claimants actual eligible rent plus the maximum £15 cap cannot exceed the LHA rate the claimant is entitled to.

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Further queries

If you have any further queries regarding Local Housing Allowance you can email us at lha@haringey.gov.uk with your query and a member of staff will get back to you.

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Page Last Updated: 22 September 2011

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