The amount of local housing allowance (LHA) you will
receive is based on the area you live in and how many people live
in your home.
In April 2011 the Government introduced changes to the LHA
scheme. Details of these changes and how they could affect you can
be found in our
housing benefit changes leaflet (pdf,
Aug 11, 97KB).
The following documents also outline the changes in more
detail:
If you live in a property where the rent is
higher than the amount of LHA you are entitled to
you will receive only the LHA payment and must contribute the
difference.
LHA payments will usually be made directly to you rather than
your landlord.
However, payments can be made directly to the landlord for
tenants who have difficulties looking after money. For more
information about this read our
safeguarding policy (pdf, Jul 11,
124KB).
LHA transition
Housing Benefits regulations were changed in April 2011 to
reduce the maximum LHA that can be paid. Rates were reduced from
the mid point of average rents for a particular area and property
size to the 30% point in the range of rents charged. This applies
to all new claims made after April 2011.
However in order to delay the impact of this for existing
claimants a nine month transition period was put in
place.
When you first claim LHA the rate used is the one for the month
in which the claim is made. This is then reviewed after one year
and becomes the anniversary date of the claim. The transitional
protection means that for nine months after your anniversary date
the old LHA rate remains in force.
As this was introduced in April 2011 the first transitional
period for claims with an anniversary date in April 2011 ends in
January 2012. Transitional protection will end for claims with
later anniversary dates every month throughout 2012.
Our
LHA rates chart (pdf, Feb 12, 23KB) shows
all the size rates for January 2012. In later months these
figures will be different but are not yet known.
Under 35 rule
Because the impact of the loss of the LHA transition starts to
take effect from January 2012 the government brought forward the
planned changes for single claimants under 35 so that they also
start to take effect from January 2012. This is to avoid two
changes in a very short period.
All claimants who are under 35 and single will from now on only
be entitled to the shared accommodation rate, regardless of the
type of accommodation they live in. For January 2012 this rate is
£68.08 in the Weston area and £63.50 in the Bristol area.
There are certain exceptions where this rule will not apply
• Claimant receives severe disability premium
• Former residents of specialist homeless hostels (Shape
Housing is the main one in North Somerset)
• Certain ex-offenders under MAPPA scheme (very rare
cases)
This change applies to all new claims from 1 January 2012. For
existing claims it will start to apply when the 9 month transition
period ends. This means that claims will continue to be affected
throughout 2012. This is not restricted to LHA claims and will
apply to old scheme cases from the date of the annual review of the
rent officer decision.
It also needs to be remembered that the rate will apply to
claimants who become single i.e. marriage or relationship breakdown
where the individual has no responsibility for children and is
under 35.
Who can apply?
Anyone who currently rents from a
private landlord will not be entitled to LHA until you
make a brand
new claim
for housing benefit or change your address to another privately
rented property.
The LHA payments will be reviewed annually to take into
account rent increases.
Who can't apply?
The LHA scheme is not available for:
- housing
association tenants
- supported
housing tenants
- crown tenants
- private tenants who started renting their current property
before 15 January 1989
- tenants living in caravans, houseboats or hostels
Information about housing benefit is also available on the
DirectGov website.
For more information contact
our housing and
council tax benefit customer services
team.
