Local Housing Allowance (LHA)

From the 7th April 2008 there will be a big change to the way we work out Housing Benefit for those in a private tenancy. For those making a claim on or after the 7th April 2008, help towards rent will be calculated using LHA rates.

What is Local Housing Allowance (LHA)?

Local Housing Allowance is Housing Benefit for people on benefits or low incomes who rent from private landlords. LHA is based on the number of rooms people are allowed and not how much the rent for the property they live in actually is. The number of rooms allowed depends on who lives with the claimant and so depends on the size of their family.

How much will LHA be?

The maximum amount of LHA paid will depend on: 

• The number of bedrooms allowed for the claimants family size 
• The LHA rate for this number of bedrooms for the area the tenancy is in

The allowances that will be set by The Rent Service each month will be the maximum amounts, the actual amount of entitlement will depend on income, savings and the claimants circumstances. The claim will be based on the LHA rate for the month the claim is made and will be reviewed every year. There are different rates of LHA for different areas. Ashfield has three different LHA areas, these are called Broad Rental Market Areas (BRMAs)

Payment of LHA

Payment of LHA will be different to Housing Benefit. This is because the payment will be made to the claimant in almost all cases. Payment cannot normally be made to the landlord, except in a very small number of cases. These will be where the tenant is vulnerable and unable to manage their rent payments. 

The Nottinghamshire Local Authorities have developed a LHA Direct Payment Policy so that decisions about vulnerability, rent arrears and payments to landlords can be determined. A copy of this policy can be found here.

We also intend to pay LHA by Bank Credit Transfer (BACS). This is a more secure way to pay benefit, should help people to budget and will make it easier to pay rent by Direct Debit which many landlords may prefer.

Who will not be affected by Local Housing Allowance?

The new rules will not apply to:

• Local authority tenants.
• Tenants of registered social landlords (housing associations).
• Tenants who have a registered or 'fair' rent.
• Tenancies which commenced before January 1989.
• Protected cases such as supported housing provided by social landlords, charities or voluntary organisations.
• Tenancies in caravans, houseboats or hostels.
• Claimants with a continuous claim from before the 7th April 2008. (Until there is a break in their claim.)

LHA Rates and Areas (BMRAs)

The LHA rates for April 2008 can be found here.
The LHA rates for May 2008 can be found here.
The LHA rates for June 2008 can be found here.
The LHA rates for July 2008 can be found here.
The LHA rates for August 2008 can be found here.
The LHA rates for September 2008 can be found here.
The LHA rates for October 2008 can be found here.
The LHA rates for November 2008 can be found here.
The LHA rates for December 2008 can be found here.

You will need to know what area or BMRA your tenancy comes under. Click on the links below to check which area you are in:

Derby BMRA map 
Nottingham BMRA map
North Notts BMRA map

For further information about the LHA and a full postcode search for LHA rates please see the LHA - Direct website.