Local housing allowance
What is the local housing allowance?
The local housing allowance (LHA) was introduced nationally from 7th April 2008, as part of central government's programme of reform to housing benefit (HB).
The LHA will affect all tenants who live in privately rented accommodation, who made a new claim, or changed address, where entitlement started on or after 7th April 2008. The rules have been amended further from 1st April 2011.
Local housing allowance does not apply if:
- You rent your property from the council
- Your landlord is a housing association
- Your rent has been registered as a 'fair rent'
- Your tenancy started before 1989
- You live somewhere where you are provided with care, support or supervision
- You live in a caravan, mobile home or houseboat.
Local housing allowance may apply if your rent includes an amount for meals. (please contact us for more details)
Who can get Local Housing Allowance?
If you live in the Rotherham area, have a low income and pay rent for your property to a private landlord then you may be able to claim LHA. You can't claim if you have savings over £16000, unless you are aged 60 or over and receive the guarantee element of pension credit.
Please see Local Housing Allowance Rates
How much Local Housing Allowance will I get?
The LHA is set each month by The Rent Service. Most tenants receive the LHA based on the number of bedrooms their household needs, up to a maximum of 4 from 1st April 2011, and not the number of rooms in the property you rent or the rent that you are charged. The LHA awarded when you make a claim lasts for one year unless your household circumstances change. After one year it is updated.
How are the Local Housing Allowance rates set?
The LHA rates are calculated by The Rent Service. These are based on the 30th percentile of the highest and lowest value for properties of a given size in the area. This means approximately 3 in 10 properties will be affordable to Benefits Claimants.
The LHA rate will be determined by the number of bedrooms required by the household up to a maximum of 4. The following size criteria will be used when determining the LHA rate:
You are allowed one bedroom for:
- Every single adult or every adult couple
- Any other adult aged 16 or over
- Any two children of the same sex under age 16
- Any two children regardless of sex under age 10
- Any other child
- Any non resident carer where the claimant or partner requires overnight care (criteria applies - see below)
Generally, single claimants aged under 35 years will normally be entitled to the standard rate for a room in shared accommodation.
Single claimants aged 35 years and over, care leavers under 22 years and couples with no dependant children will only be entitled to the rate for a one bedroom property, provided they rent a property of at least that size, otherwise the shared room rate applies.
Also, from 1st April 2011, no new claimants will be entitled to housing benefit for five or more bedrooms. The maximum payable will be restricted to the rate for four bedrooms.
Existing claimants who currently receive housing benefit for five or more bedrooms receive transitional protection until their claim is reviewed, which is normally the anniversary of their claim, unless there is a change in their circumstances or a change in their household make up.
Additional bedroom for a non resident carer
You will now be allowed an extra bedroom when we calculate your LHA if you or your partner have a need for overnight care that is provided by a carer who does not normally live with you (non resident carer). You must meet certain criteria for this rule to apply, which will include;-
- Entitlement to Attendance Allowance
- Entitlement to the care component of Disability Living Allowance at either the higher or middle rate; or
- Your request is supported by other evidence, for example a letter from their doctor or other official body, or some other sort of certificated or official evidence that you or your partner requires overnight care.
You must let us know if you or your partner need overnight care, so that we can correctly assess your entitlement to benefit. There must also be a bedroom available for the carer's own use.
How is the Local Housing Allowance paid?
Usually you will have your local housing allowance paid directly to you either by crossed cheque or straight into your bank account. It is up to you to pay your rent to your landlord.
If you (or your partner) do not have a bank account, you should be able to open one, either at a bank, building society or credit union. The Financial Services Authority have a leaflet that explains something called a 'basic bank account', which is an account that lets you have money paid in or paid out, and also a debit card so that you can withdraw money from the 'hole in the wall' machines. Credit unions also have accounts that allow you to pay money in or out. This type of account also allows you to save, and in some instances allows you to borrow at competitive rates of interest. The Financial Services Authority have a leaflet that explains how credit unions work. You will also need to prove your identity to open an account. The Financial Services Authority produce a leaflet about the types of documents that the banks might accept for proving your identity.
Please follow the links below to take you to the Financial Services authority leaflets, or alternatively call at one of the Councils Customer Services Centres in Rotherham, Swinton or Dinnington for more information and to pick up a copy.
Financial Services Authority leaflets on bank accounts, proving your identity and Credit Unions
Money Made Clear website from the Financial Services Authority
Will you pay my Local Housing Allowance to my Landlord if I request it?
We cannot normally pay your housing benefit to your landlord unless there are special reasons why you are unable to manage your rent payments yourself. These reasons include the fact that:
- You are unable to open a bank account because of undischarged bankruptcy or financial fraud;
- You have an addiction to drugs, alcohol or gambling;
- You have certain medical reasons;
- You have learning difficulties;
- You cannot read or write, or cannot speak English;
- You are fleeing domestic violence, leaving care or prison;
- You have rent arrears of 8 weeks or more.
- Your landlord has agreed to reduce your rent to an affordable level, in exchange for receiving payment of LHA direct, where it helps you to secure or retain your tenancy.
If you would like us to consider paying your LHA to your landlord please ask us for an application form. You will need to complete the form giving the reasons why you would like us to pay your LHA to your landlord. If you cannot complete this yourself, you can ask a friend, relative, advice worker or someone else who is helping you, to complete it for you. You will also need to support the request with written proof. This could, for example be a letter from the bank, your doctor or landlord (if you are in arrears).
Recovery of overpaid benefit
The rules on the recovery of overpayments are not being changed. Currently the rules are;
- Benefit overpaid to a landlord can be recovered either from the landlord, or from you, the claimant. We decide who is responsible for paying back the overpaid benefit, depending on the reasons why the overpayment has occurred.
- Benefit overpaid to you, the claimant, can only be recovered from you.
As most claimants will receive their benefit themselves under the LHA rules, most overpayments will be recovered from the customer.
However, we can still recover part from a landlord and part from the claimant, where both have been paid over a period of time.
Appeal Rights
You can appeal against any decision we make about your claim. For example, you can appeal against the decision to pay your landlord, if you disagree with the decision. This includes decisions about a claimant's vulnerability.
However, you cannot appeal against a decision that a landlord should not receive LHA on your behalf, as an agent, nor can you appeal against the level of LHA or the BRMA, unless the Rent Officer has, for example, made an arithmetical error.
The information below gives details of what you should do if you are unhappy with the decision made about your claim.
- Within one calendar month of the date on the decision notice tell the Benefits Office if you do not agree with this decision. Tell them why you think their decision is wrong.
- The Benefit Office will look at the claim and the reasons why you think their decision is wrong. They may contact you to discuss the claim further or to give you additional information and advice.
- The Benefit Office will write to you and your tenant (as appropriate) and tell you whether they have been able to change their original decision or not. They will tell you and your tenant the reasons for their decision.
- If you still do not agree with the decision made, you can appeal for the case to be heard by an independent tribunal administered by the Department for Constitutional Affairs Tribunal Service. You will need to write within one calendar month of the date of the Benefits Office letter and you must tell them why you still do not agree with their decision.
- The Benefits Office will keep you informed of what to do next. You may wish to seek independent advice from an Advice Centre such as the Citizens Advice Bureau (0870 121 2034)
Where can I find out more about the Local Housing Allowance?
You can contact the benefits service at the address and telephone number on the left hand side of this page.
You can get more information, in person, about the Local Housing Allowance from the Customer Service Centre's.
The Benefits Service also runs enquiry sessions at most of the District Housing Offices.
- Kimberworth Park District Office, Ox Close Avenue, Kimberworth Park: Wednesday, 9.00am to 12 noon
- Munsbrough District Office, Munsbrough Rise, Greasbrough: Tuesday, 9.00am to 12 noon
- Rawmarsh (Parkgate office), Rawmarsh Hill, Rawmarsh: (next to Rawmarsh library) Wednesday, 1.45pm to 4.15pm
- Wath Town Hall, Church Street, Wath Upon Dearne: Tuesday, 11.45am to 4.15pm and Friday, 9.00am to 12 noon
LHA Bedroom Calculator
Please visit the following link for the LHA Bedroom Calculator. The LHA-Direct website has been developed to enable tenants renting accommodation from a private landlord to calculate the possible amount of Housing Benefit available to them from their Local Authority.
Number of rooms calculator and LHA rates
Documentation
Please visit our related downloads section for further information on Local Housing Allowance.
The Local Housing Allowance rent levels are updated monthly. Please see our related downloads section for up to date Local Housing Allowance rent levels.
Last updated 04/04/2012