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What is Local Housing Allowance

LHA is a new way of calculating Housing Benefit (HB) which is based on the area the you live, number of occupiers in the property and household size. LHA is a much fairer way of calculating HB, as it ensures that tenants in similar circumstances in the same area receive the same amount of financial support for their housing costs.

How do these changes affect those on Housing Benefit

If you are already on HB you will not be affected unless you change address and move into accommodation rented from a private landlord then you will be moved onto LHA.

How is Local Housing Allowance calculated

The LHA rates are calculated for individual areas, known as Broad Market Rental Areas, each month. The amount payable will be based on the 'middle of the range' rental figure for the area, which the property is in and will take account of the size of the property.

Basing the LHA on the middle of the range for a certain property size means that exactly half of the rental properties of that size in the area will be affordable within the LHA amount that you receive.

How much will you get

If the rent of the property you have negotiated with your landlord is lower than the LHA rate you will be able to keep any excess benefit up to a maximum of £15 per week. This excess will not normally be taken into account when deciding other benefits. If the rent is higher than the LHA rate you will be required to pay the difference or look for alternative accommodation within the LHA rates.

Entitlement to the LHA is means-tested and you will need to provide a valid tenancy agreement as proof.

How to claim

You can claim LHA as soon as you have a rent agreement with your landlord. Contact your local council as early as possible to discuss your claim. If you delay you could lose benefit.

How you are paid LHA

The payment will normally be made to you straight to your bank or building society account (if you have one) or by cheque. Payment is not normally made to your landlord.

If you do not already have a bank or building society account, you may want to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order.

You can get advice about opening and running a bank account from any bank or building society. You can also get advice from organisation like Citizens Advice. There is also advice on bank accounts available.

• Bank accounts and banking products

It is up to you to pay the rent to your landlord. If you don't pay rent, you may be taken to court and evicted form the property.

If you are worried about managing your money, ask your local council if they can help you. In some cases they may be able to pay your benefit to your landlord.

Where are the rates published

Local Housing Allowance rates are published at the end of each month for the following month. For example, the April rates will be made available at the end of March. You can check these locally on your local council's website or by visiting the Local Housing Allowance Direct website.

• Local Housing Allowance Direct Opens new window

• A to Z of local councils

Changes of circumstance

If you are getting Housing Benefit and you move to a new address or other circumstances change, you should tell your local council straightaway. You may need to make a new claim for Housing Benefit.

Claiming Income Support, Jobseekers Allowance or Employment and Support Allowance

If you claim Income Support, Jobseeker's Allowance or Employment and Support Allowance you will get forms to claim LHA with your claim pack. Complete and return the form with your Income Support, Jobseeker's Allowance or Employment and Support Allowance claim form.

If you wish to claim Housing Benefit or Council Tax Benefit in addition to the above benefits, Jobcentre Plus, The Pensions Service or the Disability and Carers Service will send the relevant forms to your local council. If you do not claim Income Support, Jobseeker's Allowance or Employment and Support Allowance you can get forms to claim LHA from your local council.

To get a LHA claim form contact your local council

• A to Z of local councils

More useful links

• On a low income benefits information

• Mortgage Interest Run On information - home loan help

• Rent arrears

• Home buying schemes (home and community section)

• Beginner's guide to tax