What the scheme provides
Choice: Allowing tenants to trade between quality and price of their accommodation. For example, tenants are able to choose between paying more to stay in a property that is; larger than they qualify for under the size criteria or increasing their income after paying their rent by moving to a smaller property.
Transparency: The scheme makes it easier for tenants and landlords to find out in advance how much rent could be covered by Housing Benefit. In the past, private tenants sometimes found that Housing Benefit did not meet their rent. Now claimants and landlords know in advance the amount to be used in Housing Benefit.
Fairness: The LHA scheme is designed to pay the same amount to tenants with similar circumstances living in the same area. Previously, tenants in smaller properties than they need generally received less benefit than those with similar needs in the same area, who live in larger properties. Now tenants who live in a smaller property than they need receive the same level of benefit than those in lager properties and can keep the difference, which increases their deposable income.
Personal responsibility: The intention is that paying the allowance to the claimant will encourage them to take responsibility for budgeting and paying their rent themselves rather than have it paid to them.
Faster, simpler claiming process: There is no longer any need to wait for the Rent Officer determination before Housing Benefit can be finalised.
How LHA is calculated
The Rent Service will provide the council with Local Housing Allowance rates each month. These rates will then be used for any new claim received by the Council during the month. There is a set of rates ranging from shared or 1 room rate. The rate you are entitled to will depend on who lives with you.
Broad Rental Market Areas (BRMA)
The BRMA is defined by the Rent Service and is an area of residential accommodation within which a person could move and still have access to similar services of similar standard. Ipswich has only one BRMA.
How many rooms can you claim for?
This will depend on the number of people who live with you. For example a single person under 25 will only be entitled to the shared rate LHA. If you are over 25 with or without a partner and you have no children then you will be entitled to the shared rate if you live in shared accommodation or the 2-room rate if you live in self-contained accommodation. For everyone else with children or non-dependants then the LHA is based on the number of rooms you are allowed.
One bedroom is allowed for the following:
- Every adult couple
- Any other adult age 16 or over
- Any two children under 10
- Any two children of the same sex aged up to 15
- Any other children
If you qualify for more than 6 rooms
The Rent Service will provide figures for LHA for more than 6 rooms on request. You should contact the Council if you think you will be entitled to more than the 6-room rate. Telephone our Local Housing Allowance Officer on 01473 433806.
Persons with disabilities
You will only be entitled to claim for the number of rooms allowed under the rules. There are no provisions in the rules to allow additional rooms for persons with disabilities.
If the rent you pay is less than the LHA
One of the objectives of the scheme is to give you more choice. If you decide to rent accommodation that is cheaper than the allowance, then you can keep the difference up to £15. If you decide to rent somewhere more expensive then you must pay the difference from your other income.
Board and lodge
If a claim for Housing Benefit is made on a tenancy that has board included, then the Council must refer the case to the Rent Service. The Rent Service will decide if the board is a substantial part of the tenancy. If they decide that it is, the claim is dealt with under the normal Housing Benefit rules using the Rent Officer’s decision in the benefit calculation. If the Rent Service decides that board is not a substantial part of the rent, the claim is paid under the LHA rules.
Length of LHA
Once your claim has been assessed, the LHA figure will last for a year from the date of the claim.
Change of circumstances
If you have a change of circumstances that affects the number of rooms you are allowed then the LHA figure can be changed. The new allowance will last for a year counting from the date the change of circumstances occurred.
The landlord increases the rent
The Local Housing Allowance takes no account of the actual level of rent payable; it is based purely on your room requirement. That is why if you rent somewhere cheaper than the LHA rate, you can keep the difference up to £15. A rent increase would not normally be a change that would require a new LHA to be used. However, if the rent increase was in the tenancy agreement at the time you made your claim for benefit then a new LHA figure can be used in the benefit assessment from the date of increase. You should note that this does not necessarily mean that there will be an increase of benefit because the Rent Service will only change the LHA rates if there is a change in the rental market.
The tenant moves home
If you move home then you will have to complete a new Housing Benefit claim form. The rate of LHA will depend on the area you move to and the number of rooms you are allowed. The LHA figure will be identified from the date your claim form is received by the Council.
Payment of LHA
LHA is payable to the claimant. You will no longer have the choice of direct payments to the landlord. Payments will be made fortnightly in arrears and you will have to arrange to pay the rent to the landlord. Payments can be made by direct transfer to your bank account, which will mean there are no postal delays to worry about and you do not have to wait until a cheque is clear. Payments can be made by direct transfer to your bank account, which will mean there are no postal delays to worry about and you do not have to wait for a cheque to clear. The money is available to you immediately it arrives at your bank. If you do not have a bank account and wish to open one, please contact our Local Housing Allowance Officer on 01473 433806 for more information. The Council has prepared a list of local banks that are able to help people who have difficulty in opening a bank account in the past.
Informing the landlord
The Council will not talk to your landlord about your claim unless you have given written permission to do so. However, if you are in arrears with your rent by 8 weeks or more, the landlord has the right to ask for direct payments and in those circumstances. The Council would confirm the amount of benefit to which you are entitled to your landlord.
Rent previously paid directly to a landlord
If you are unable to take responsibility for the payment of rent, then the Council can make payments direct to your landlord. However this will only happen if there is compelling reason to do so, such as serious illness that means that you cannot cope with handling your financial affairs. If you are worried about taking this responsibility then you should talk to your Council about your concerns and explain the situation. If they are unable to make payments direct to your landlord there may be other help or advice to assist you.
Will the benefit entitlement be the same as the LHA?
The rules for calculating the actual entitlement to benefit have not changed. The amount you qualify for will still be affected by your income, capital and personal circumstances. The presence of non-dependants in the household will also affect you benefit unless you are in receipt of Disability Living Allowance care component or are registered blind.
Is it possible to appeal against the amount of the LHA?
You cannot appeal against the level of the LHA that the Rent Service has set. This rate is used for everyone qualifying for that room requirement of LHA in that month. However you will have the right to dispute any decision that the Council has made when calculating your claim. For example, you may disagree with the amount of income used by the Council or if you think the Council has made a mistake in the number of rooms you are allowed. You can ask for an explanation of the calculation or you can make a written request for a review or make a written request for an appeal hearing. A leaflet about this and the time limits for a dispute will be sent with your decision notice.