Local Housing Allowance (LHA) came into effect on 7 April 2008 and changed the way in which housing benefit for some tenants in privately rented accommodation is calculated. The scheme is intended to be a fairer, simpler way of working out housing benefit for people on a low income who need help paying their rent.
LHA changes April 2011
The Government is making changes to the way housing benefit is calculated for private sector tenants from 1 April 2011
What will the changes mean?
It is possible that the amount of housing benefit you get to pay your rent could go down.
If your housing benefit is paid directly to your landlord, the amount your landlord gets for rent could go down.
If you're getting or thinking of claiming housing benefit, you need to consider these changes before you renew or make a new tenancy agreement with a private landlord.
Who will the changes affect?
These changes could affect you if:
- You're claiming housing benefit, or are going to make a new claim, under the Local Housing Allowance scheme (LHA).
- You receive more housing benefit (up to £15) than you pay for your rent.
When will the changes affect me?
From the 1 April 2011 if you receive more housing benefit (up to £15) than you pay for your rent
From the 1 April 2011 if you're making a new claim for housing benefit.
If you're already claiming housing benefit, you will normally have more time before your rate changes. If your circumstances don't change, you will have nine months at your current LHA rate from when your Local Authority next assesses your housing benefit after 1 April 2011.
It is important to remember that after your assessment the housing benefit you get won't be higher than the rate you pay.
For example, if your next assessment is due in June 2011 the changes to LHA rates will not affect you until March 2012. But you will no longer get more Housing Benefit than you pay in rent. The changes may affect you sooner if:
- You are getting housing benefit and are planning to move home
- Your household is changing such as someone leaving or coming to live with you.
If you're claiming or intending to claim housing benefit you need to be aware of the changes and when you will be affected before negotiating or entering into a new tenancy agreement with a private landlord.
Local Housing Allowance rates
From 1 April 2011 the LHA rates are going down. To help you plan for the changes you can compare the current rates against what the new rates are likely to be where you live on the Directgov website.
This information is provided for guidance only, should you have any further queries please contact our direct benefit enquiries line on 01724 296131 or email benefits@northlincs.gov.uk
More LHA information
More information