Local Housing Allowance
This page contains information about Local Housing Allowance, who it affects and how it will be paid.
From 7 April 2008 Housing Benefit for tenants of private landlords changed to Local Housing Allowance.
Local Housing Allowance - Safeguard Policy (PDF Document, 47.56 Kb)
Local Housing Allowance for Tenants (PDF Document, 335.75 Kb)
Local Housing Allowance for Landlords (PDF Document, 307.11 Kb)
Payment to Landlord Form (PDF Document, 143.03 Kb)
Who will it affect
Local Housing Allowance will only apply to the following:
- new claimants in private rented property,
- existing claimants who change address or
- existing claimants who have a break in their claim.
Local Housing Allowance does not apply to you if:
- you rent from the council,
- your landlord is a Housing Association,
- your rent has been registered a fair rent,
- your tenancy started before 1989,
- you live somewhere where you are provided with care, support or supervision or
- you live in a caravan, mobile home or houseboat.
How much Local Housing Allowance will I get?
The amount of Local Housing Allowance you will get depends on:
- who lives with you - the number of bedrooms you need,
- the area you want to live in,
- how much money you have coming in and
- what savings you have.
Local Housing Allowance does not depend on how much rent you pay.
The number of rooms you need
The Local Housing Allowance is a flat rate housing allowance and the number of people who live with you will be used to work out how many bedrooms you need. One bedroom is allowed for:
- every adult couple,
- any other adult aged 16 or over,
- any two children regardless of sex aged under age 10,
- any two children of the same sex aged under 16 and
- any other child.
The number of other rooms is ignored for this purpose as all tenants are entitled to these. If you are in doubt about how many bedrooms you will be allocated under Local Housing Allowance (LHA), you can visit the LHA online bedroom calculator.
Single persons aged under 35 years
A single person aged under 35 years, who does not have a dependant living with them, will be entitled to the standard shared accommodation rate of Local Housing Allowance. However, this will be based on a more generous definition than the existing single room rent which limits Housing Benefit entitlement to the rate for a room in shared accommodation. The new rate will be based on properties where the tenant has the exclusive use of only one bedroom and the tenancy provides for the tenant to share the use of one or more of a kitchen, bathroom, toilet or room suitable for living in. A severely disabled person under 35 years and care leavers under 22 years will be entitled to the Local Housing Allowance rate for a one bedroomed self-contained property, provided they rent a property of at least that size. For those who qualify for a severe disability premium, they will qualify for the one bedroom rate regardless of the size of their accommodation.
The area you live in or want to live in
Your local council will be divided into Broad Market Rental Areas by the Rent Service. You can use your postcode to work out your area. You will then be able to work out from the number of bedrooms, the area you want to live in and what rate of Local Housing Allowance you would be entitled to. Local Housing Allowance will pay the same amount wherever you choose to live in your area. It is not dependant on the rent charged.
You can find out more about Broad Market Rental Areas by visiting the Valuation Office Agency web site.
How much money you have coming in and savings
The Housing Benefit entitlement calculation has not changed. The Benefit section will still need to have your income and savings details which will be used in the benefit calculation along with your Local Housing Allowance rate to calculate your entitlement.
How will Local Housing Allowance be paid
Local Housing Allowance will usually be paid to the claimant who will then be responsible for paying the rent to the landlord. Local Housing Allowance will be paid by cheque or by electronic transfer into a bank. This means that claimants will need to open a bank account. If you do not already have one you can find more information about opening a bank account by telephoning the Benefit Section on Leicester (0116) 288 8961 option 4, for a leaflet. Help will be available to those claimants who may have difficulty with banking and budgetary issues.
Changes from April 2013
From April 2013 the way Local Housing Allowance claims have their annual review will change. From April 2013 all Local Housing Allowance claims will have their annual review every April. The rates used in the April review will be announced in October to November based on the following criteria:
- the previous LHA rate uprated by the previous September's Consumer Price Index or,
- the 30th percentile of local market rents in the previous September.
For further information please follow the link to our Benefits Legislation Changes page.
Safeguards
As a tenant you may feel that you cannot cope with the responsibility of paying your rent yourself. As a landlord you may feel that your tenant cannot cope with this responsibility. The Benefits Section can decide to make payments direct to a landlord in a number of circumstances if we decide in accordance with our Safeguard Policy, that you or your tenant should be classed as 'vulnerable'. Extra safeguards will also be in place for non payment of rent. More details about the Safeguard policy, how to apply for payments to be sent direct to the landlord and where to get help applying can be found in the
Local Housing Allowance - Safeguard Policy (PDF Document, 47.56 Kb) and the
Payment to Landlord Form (PDF Document, 143.03 Kb).
Please note that Local Housing Allowance was effective from 7 April 2008 and does not affect existing claimants until they move or have a break in their claim. If you are a tenant or a landlord currently receiving Housing Benefit we will automatically send you information about the new scheme.
If you are a tenant or a landlord not currently receiving Housing Benefit and would like more information, please contact the Benefit Section.
Related Documents (4)
Local Housing Allowance for Tenants (PDF Document, 335.75 Kb)
Local Housing Allowance for Landlords (PDF Document, 307.11 Kb)
Payment to Landlord Form (PDF Document, 143.03 Kb)
Local Housing Allowance - Safeguard Policy (PDF Document, 47.56 Kb)
Related Links (2)
Frequently Asked Questions (18)
Possibly, but you must provide the Council with all of the reasons why your entitlement should start from a date earlier than the date you submitted your benefit application form. The Council will only be able to agree to backdate your claim if you can demonstrate good cause why you did not apply earlier and that this existed for the whole of the period that you are seeking backdated benefit to be paid. Reasons such as 'I did not know about the scheme' or 'I did not have time to apply' are not normally considered to demonstrate good cause. Backdated benefit entitlement cannot exceed a period of 6 months for a claimant or partner who are under 60 and cannot exceed a period of 3 months for a claimant or partner who are 60 or over from the date of the claim.
Send us a letter within one month to the address on this page.
You can apply for both Housing Benefit (help with your rent) and Council Tax Benefit (help with your Council Tax) by completing the Council's housing and council tax benefit application form. However, if you have already filled in the Benefits Agency form (HCTB1 or Local Authority Input Document) along with an application for Income Support or Income Based Job Seekers Allowance, you do not need to also complete the Council form unless you wish to claim Housing Benefit as a tenant of a private landlord.
You will need to submit all the documentary proof that is asked for (original documents only) including evidence of your identity and your National Insurance number. For further information please go to the Information Required page.
Please answer all the questions on the form, and provide the necessary supporting evidence as quickly as possible, to allow us to assess your claim promptly. If you don't have the documentary evidence immediately available do not delay submitting your claim for housing and council tax benefit otherwise you may lose benefit to which you are entitled. (See question 5 regarding backdating of entitlement.)
For more information go to the Housing and Council Tax benefit entitlement page.
We aim to assess new claims within 14 days of receiving all of the required information. Things that may delay your claim being processed include:
If all sections of the application form are not fully completed, including the declaration and signature.
If you do not supply all of the supporting documentation.
If the Council is waiting for information about your claim from another agency such as Her Majesty's Revenues and Customs, the Pension Service, or the Department of work and Pensions.
If the Council needs further information from you regarding your claim (in which case we will contact you). You have up to 1 month to provide the information but this delays processing your claim so we would appreciate your early response to requests for information.
You will be sent a notification letter once your application has been processed, advising you of your housing and council tax benefit entitlement.
Your entitlement will continue for as long as there is no change in the circumstances declared on your original claim form. It is important that any change of circumstances is reported promptly so always check that you have reported any change both to the Department for Work and Pensions (Job Centre Plus or the Pension Service) and to the Council.
Both housing benefit and council tax benefit are means tested benefits. The calculation takes account of the claimant's income, savings, capital, the number of residents in the household and their personal and financial circumstances. The calculation also includes the amount of any rent and/or council tax payable. You may qualify for up to 100 per cent housing and council tax benefit.
For claims made now some claimants will qualify for Local Housing Allowance which does not take account of the actual rent payable. For further information please go to the Local Housing Allowance page.
Your weekly entitlement to council tax benefit will be converted to an annual amount, credited directly to your Council Tax account and be deducted from the balance that is due to be paid.
Payment of Housing Benefit will depend upon the type of your tenancy and other circumstances for example:
If you are a Council tenant then your weekly entitlement will be credited to your rent account so that the actual weekly rent that you pay will be the difference between the full rent and your housing benefit entitlement.
If you are a tenant of a private or Registered Social Landlord then your Housing Benefit entitlement may be paid either, to you, or to your landlord, by BACS (Bankers Automated Credit System) straight into a bank account or by cheque. If it is paid to you then you will be paid in arrears every 2 weeks but if it is paid to your landlord it will be paid in arrears every 4 weeks. You can sometimes decide who should receive the payment. However, if you are 8 weeks or more in arrears with your rent your landlord can insist that housing benefit be paid directly to them. Claims made now, at a new address, will be subject to the Local Housing Allowance rules which mean that, with certain exceptions, housing benefit is only paid to the tenant.
Your circumstances may have changed e.g. savings, income, rent, someone moving in or out of your household, or someone in your household having a significant birthday – 10, 16, 18, 25, 60, 65 or 80 years.
Your entitlement to other benefits administered by Job Centre Plus or the Pension Service may have changed or been cancelled by The Department of Work and Pensions. This means that you may need to complete a new application form.
You may have been overpaid housing benefit or council tax benefit and your entitlement may have been reduced to recover the outstanding amount.
Housing and council tax benefit entitlement normally commences from the Monday following the date that you first indicated to the Council's Benefit Section, or any associated office, that you wished to claim housing and council tax benefit, provided that you then submitted your application within one month of that date of first contact.
However, if you apply during the week in which your tenancy or Council Tax liability starts then benefit will be paid from that date. It is important therefore to submit your application as soon as possible. Please don't wait until you have all of the supporting evidence that is required. For example you can submit your claim with 3 payslips even though 5 are requested. The remaining 2 can be submitted when they are available as long as that is within 4 weeks of submitting the original claim.
If you pay rent to a landlord who is also a close relative and you live in the same property then you will not be able to claim housing benefit.
If you pay rent to a landlord who is also a close relative and you do not live in the same property then you may be able to claim housing benefit. However the Council will need to ensure that the tenancy meets all the criteria of a fully commercial arrangement and will probably ask you for more details in support of your claim.
The Council cannot normally pay housing benefit if you are renting from a relative, a property that you previously owned, or if you are paying rent to a former partner/spouse.
If that person is your spouse, civil partner or partner (same or opposite sex) then you will need to be re-assessed as a couple and that will involve taking account of your joint circumstances.
If the person is aged 18 or over, and lives with you on a non-commercial basis they will need to be treated as a 'non-dependant' for housing and council tax benefit purposes, and in most situations this will affect your entitlement. Normally a non-dependant deduction will be made from your entitlement based upon the circumstances of the person new to your household.
To prevent any overpayment of housing and council tax benefit it is always safer to report all changes in your household/family arrangements and the Council will then be able to advise if the change affects your entitlement.
In certain circumstances some students can claim housing and council tax benefit for example lone parent students, or if you are the partner of a student. However, the rules regarding definition of a student and eligibility for HB/CTB are complex so you are advised to contact the Benefit Section for advice.
The fact that you are in receipt of one of these benefits does not give an automatic entitlement to housing and council tax and a claim must always be submitted to the Council. When claiming Income Support or income based Job Seekers Allowance a housing and council tax benefit application form (called an HCTB1 form or Local Authority Input Document) is provided by the Department for Work and Pensions and should be completed and returned to them. They will pass that form to the Council but you are advised to check that the Council has received it.
Receipt of form HCTB1 or Local Authority Input Document, along with confirmation of entitlement to Income Support or income based Job Seekers Allowance, will usually, but not always, allow the Council to award housing benefit or council tax benefit without carrying out any further enquiries into your household or income. However, further information may be required (such as rent details) and you may be asked to provide this information by completing the Council's own housing and council tax benefit claim form.
In certain circumstances the Council may be able to award you a Discretionary Housing Payment allowance of part, or all, of the shortfall between your housing benefit and your rent. The allowance is not a permanent award but is paid for a short period to help those with financial difficulties that temporarily affect their ability to pay their rent for example they need time look for more affordable accommodation or they have been unable to work due to illness.
If you have been in receipt of qualifying benefits for at least 26 weeks and inform the Council within four weeks of the date that you start work, you may be entitled to an additional four weeks housing benefit. A qualifying benefit is Income Based Job Seekers Allowance, Income Support, Income Related Employment and Support Allowance, Incapacity Benefit and Severe Disablement Allowance. This is called 'Housing Benefit Run On' or 'Extended Payment'. For further information please contact the Benefit Section.
Any amount of overpaid housing benefit will normally be recovered from the claimant or, in certain circumstances, the landlord.
Any amount of overpaid council tax benefit will normally be added back on to your Council Tax liability.
If the overpayment is the result of an error on the part of the Council, the Department for Work and Pensions or any other relevant official organisation, and the person receiving the housing and council tax benefit couldn't have reasonably been expected to know that they were receiving too much benefit, then it will not usually be recoverable.
If the Council believes that you are liable to repay the overpaid housing and council tax benefit you will be informed in writing of the amount of overpayment and the period that it relates to.
Any amount of housing and council tax benefit which has been awarded but to which there is no entitlement, whether on initial determination, or as subsequently revised on review or further review.
You can only get help with your rent for things that are eligible. Amounts included in your rent for things like water rates, lighting, meals and heating are not eligible for housing benefit.
You may have a 'non-dependant' living with you (this is someone aged 18 or over who is not legally dependent upon you), and an amount is deducted from your Housing Benefit based upon the circumstances of the non-dependant. The housing benefit scheme expects that the non-dependant will contribute towards the cost of the rent.
If you are renting from a private sector landlord then the amount of housing benefit that you receive will be based upon a maximum rent figure for your property/tenancy which is provided by the local Rent Service. This maximum rent figure will be less than your actual rent paid in situations where your accommodation is larger than you need, or the rent for your property is higher than the local average for similar properties.
In most instances, new claims made now, the information regarding the Rent Service will not apply to tenants renting from the private sector whose housing benefit is paid under the Local Housing Allowance Scheme.
Last updated: Wednesday, 21 November 2012 10:51 am




