The information on this page is presented in the format of frequently asked questions. Please click a question from the index below to see the appropriate answer.
When does the LHA scheme start?
The scheme will start on 7 April 2008. From this date onwards, tenants who make a new claim for Housing Benefit or change their address will have their Housing Benefit calculated under the LHA rules.
Which tenants will not be affected by LHA?
Only tenants with ‘mainstream’ tenancies in the deregulated private rented sector are affected. LHA will not apply to you if:
What are the Broad Rental Market Areas?
Rent Officers set LHA rates for a Broad Rental Market Area, (BRMA) based on a ‘locality’ similar to how they work out local reference rents and single room rents now. We are waiting for The Rent Service to confirm this information.
Who will set the LHA rates?
The Rent Service will be responsible for setting the LHA for different sizes of properties in each Broad Rental Market Area. Every month, the Rent Service will give us the rates for all property sizes up to six bedrooms. If we receive a benefit claim for a family who need more than six bedrooms, we will ask The Rent Service to give us the LHA rate for that sized property.
What LHA rate will apply to me?
The LHA rate that will apply to you will depend on the number of bedrooms you need. The number of bedrooms allowed depends on who lives with you as part of your household. Generally, one bedroom will be allowed for:
For example, a couple with two children aged 6 and 8 would be allowed the LHA rate for two bedrooms.
There will be different LHA rates for:
Special rules apply to single people over 25 and couples without children. These people will only be allowed the 1 bedroom property rate if they actually live in a property of at least this size. Otherwise, they will be allowed the shared accommodation rate.
What will single tenants living in a bed-sit or studio accommodation be entitled to?
There will be a special category of LHA for shared accommodation. This is based on market rents for non self-contained accommodation. The rate will be based on a more generous definition than the existing single room rent used to assess benefit entitlement for single people under 25. Most tenants under 25 living alone will be entitled to the shared accommodation rate.
The shared accommodation rate will also be paid to single people over 25 and couples without children who are entitled to one bedroom under the size criteria but who actually live in accommodation where they share facilities like a living room, kitchen or bathroom.
How is the Local Housing Allowance rate used to work out Housing Benefit?
Your Housing Benefit will be based on the LHA rate that applies to you. Your income, any savings you have and any non dependants living with you will still affect how much Housing Benefit we will pay you. Your LHA rate is really the starting point for working out your Housing Benefit.
If your LHA rate is less than the rent you have to pay, your Housing Benefit will be based on your LHA rate.
If your LHA rate is more than the rent you have to pay, you will be able to keep the difference up to a maximum of £15 a week. For example:
What if my LHA rate is more than the rent I have to pay?
If your LHA rate is more than the rent you have to pay, you will be able to keep the difference up to a maximum of £15 a week.
Why is Housing Benefit under the LHA scheme paid to the tenant rather than the landlord?
The right for tenants to instruct us to pay their Housing Benefit to their landlord does not exist under LHA rules. The Government believes that tenants receiving Housing Benefit should, where they are able to, take greater responsibility for managing their financial affairs in the same way as other tenants do. This should also help to give people of working age the skills they need when they move into work.
I don’t have a bank account, and the council want to pay my housing benefit to me directly. What can I do?
The council and the government are promoting the use of basic bank accounts for tenants receiving benefit. The use of standing orders and direct debits are an easy and effective way of managing money and mean that you don't need to wait for cheques to clear. Please use the money advice section available on this site to enable you to open a bank account before April 2008.
What safeguards exist for landlords?
The Local Housing Allowance scheme has a range of safeguards to protect the interests of tenants and landlords. Some of these exist now, for example, we can make direct payments to a landlord where the tenant is eight weeks or more in arrears with their rent. In addition, the Local Housing Allowance scheme allows us to make direct payments to the landlord if we consider the tenant is unlikely to pay their rent.
The Local Housing Allowance scheme also recognises that some tenants will not be able to successfully manage their own affairs, including paying their rent, because they are vulnerable in some way. In these circumstances, we will have discretion to pay the tenant’s Housing Benefit to the landlord. In order to be considered vulnerable, a tenant must meet certain criteria, for example, learning difficulties, medical conditions, illiteracy, an addiction to drugs, alcohol and gambling.
We will be developing a Safeguard Policy setting out all the circumstances when we will apply the safeguard provisions and pay Housing Benefit to the landlord.
Who is to say whether a tenant is unable to manage their own affairs and unlikely to pay their rent?
We will decide whether a tenant is unable to manage their own affairs or is unlikely to pay their rent. We will make this decision after considering the Department for Work and Pensions’ Local Housing Allowance safeguard guidance and any evidence we gather as a result of representations from the tenant or a third party. We will take account of all the information and evidence available to us at the time, including any information from the landlord and any known past history of non payment of rent, when reaching our decision.
Can a landlord say whether their tenant is unable to manage their own affairs?
A landlord may approach us if they consider their tenant is unable to manage their own affairs. We will then want to investigate the tenant’s circumstances and request proof, for example, a letter from a Doctor or support worker. We may also interview the tenant before making a decision.
As a landlord, can I make direct payment of Housing Benefit a condition of the tenancy?
Tenancy agreements are binding contracts between a landlord and their tenant. We are not party to the tenancy agreement and, as such, are not bound by any conditions in the agreement. However, the landlord should note that the Local Housing Allowance legislation states payments of Housing Benefits are to be made to the tenant and not the landlord. Therefore the tenant will not have the legal power to meet this condition.
However, if certain conditions are met then payments can be made directly to the landlord, for example, if the tenant is unable to manage their affairs.
What appeal rights do I have against a payment decision?
Appeal rights are not changing as a result of the new scheme. You will not be able to appeal against the Local Housing Allowance rates set for the area. You will be able to appeal against a decision to pay Housing Benefit to you or not to pay Housing Benefit to you if you are a person affected by that decision, for example, if you are a landlord and have asked us to pay your tenant’s Housing Benefit to you but we have refused.
Won’t tenants spend their Housing Benefit on other things or abscond?
Many tenants in the private rented sector (around 40% across the country) already receive their Housing Benefit direct. The great majority of these tenants regularly pay their rent on time. We will be encouraging and supporting tenants to have their Housing Benefit paid into a bank account and to set up a standing order or direct debit to pay the rent to their landlord.
There may be examples of some tenants misusing their Housing Benefit or absconding without paying the rent. When we are made aware of these abuses, we will make future payments to the landlord. It is important landlords tell us as soon as their tenant misses a rent payment or they suspect the tenant may not pay the rent so we can investigate. Landlords should not wait until the tenant is in arrears of eight weeks or more.
What will happen if landlords decide to no longer take Housing Benefit tenants?
The Government believes the Local Housing Allowance scheme has merits for both landlords and tenants and we hope that landlords will give the reforms a chance to work rather than decide not to let property to people on Housing Benefit. The reforms are intended to help landlords and tenants alike, by creating a more transparent system that will be simpler for people to understand and for local authorities to administer. But we believe there are other benefits too:
The Government believes the safeguards they have built in for direct payment to landlords strike the right balance in protecting the interests of both landlord and tenant.
How do I find out what the Local Housing Allowance rate for my property will be?
Local Housing Allowance rates are based on the number of bedrooms a tenant needs not the size of the property they actually live in. The Local Housing Allowance rates will therefore inform you of the maximum amount a household of a certain size could be awarded. The Rent Service will make an assessment of the Local Housing Allowance rates for our area in advance and these will be reviewed monthly. The Rent Service will pass the new rates to us just before the start of the month and we will publicise the rates, for example, on the council’s website and in our offices and the neighbourhood Customer Service Centres.
Will payments of Housing Benefit under the LHA scheme be made in advance?
Most tenants already have their Housing Benefit paid in arrears. There are no plans to make Housing Benefits payments under the Local Housing Allowance scheme in advance. Paying Housing Benefit in arrears aligns this benefit with other social security benefits and with most other forms of income, for example, earnings.
If my rent increases, will my Housing Benefit also increase?
We will review your Local Housing Allowance rate every year on the anniversary of the day you claimed. Your maximum Housing Benefit will then be the Local Housing Allowance rate that applies for that month. We will continue to work out your housing benefit entitlement in the usual way by taking into account your capital and income. The only thing that is changing is the way we work out the maximum Housing Benefit. Your maximum Housing Benefit will not increase if your rent increases.
The size of my household has changed. What will happen to my Housing Benefit?
If somebody moves in or out of your household, you must tell us. We will then change your maximum Housing Benefit to the correct Local Housing Allowance rate for the new size of your household.
If someone in your household has a birthday that will affect your Local Housing Allowance rate (for example, when a child turns 16), we may also need to change your Local Housing Allowance as that person may then need an extra room.
I have asked for my claim to be backdated. Which rate of Local Housing Allowance will my claim be based on?
This depends on whether you have asked for your claim to be backdated to a date before 7 April 2008.
If we have decided to backdate your claim to before 7 April 2008, we will class the date you claim as being before the Local Housing Allowance regulations came into force. As a result, your maximum Housing Benefit will depend on what the Rent Officer decides. You will only change to Local Housing Allowance when you move or if you stop claiming and then start again.
If you ask for your claim to be backdated to a date after 7 April 2008 and we agree to do this, your Local Housing Allowance rate will be based on the figures that apply for the month you have asked your claim to start from. This may be different to the figures for the month you have claimed in. We will review your Local Housing Allowance rate on the anniversary of the start of your claim.
For all enquiries please contact the Customer Service Centre
01753 475111
My Council
Landmark Place
High Street
Slough
opposite Slough Library
This symbol indicates a link will take you outside this website. Links will open in a new browser window.
