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Local housing allowance

Local Housing Allowance (LHA) was introduced on the 7th April 2008. It is a way of calculating your rent allowance. LHA pays a flat rate of benefit, depending on the number of bedrooms that your household requires. The payments, wherever possible, will be made to yourself rather than your Landlord. This results in a simpler and fairer system that promotes responsibility and choice.

Update - changes to LHA from April 2011

As part of the Governments programme of welfare reform a number of changes are set to be implemented from April 2011.

For anyone making a new claim for Local Housing Allowance, effective from the 4th April 2011 or after, the changes will apply from the start of their claim.

For existing claimants the changes will generally be implemented from their LHA 'anniversary' date. However, should a claimant have a change in their circumstances, that would effect their current LHA rate of LHA, the new regulations may be applied earlier. Although, for some changes a 9 month period of 'transitional protection' may be applicable.

The changes - explained

The removal of the £15.00 'excess' payment

Currently, if the rent you are charged is below the LHA figure, you may have received up to £15.00 in 'excess' payments. This will not be available for new claims, effective from the 4th April 2011 and will end for existing claimants receiving the top-up from their 'anniversary' date.

The removal of the five bedroom LHA rate

From April 2011 the maximum property size that can be paid to you under LHA regulations is the 4 bedroom rate. For exhisting claimants, who currently receive the 5 bedroom rate, your existing figure will be normally continue to be used for 9 months following your anniversary date.

However, the changes may begin to effect your claim sooner if there is a change in your household which affects your Local Housing Allowance 'bedroom rate' or if you change address.

The 'capping' of the maximum weekly bedroom rate

Central Government have introduced 'caps' to the amount of LHA from the 1st April 2011. This now means that no area in the UK will receive LHA rates above the following:

  • £250.00 per week for a one bedroom property
  • £290.00 per week for a two bedroom property
  • £340.00 per week for a three bedroom property
  • £400.00 per week for a four bedroom property

The setting of rent levels

Prior to the 1st April 2011 each LHA rate has been set by determining the 'mid-point' or 'median' rent, calculated from the average of rents for that particular bedroom size across the Broad Rental Market Area (BRMA).

This will change from the 1st April 2011, with the LHA rate now being determined based 30% of all the rents across the BRMA.

The effect of this change is that the LHA rates will decrease, and therefore it is possible that you will notice a decrease in your Local Housing Allowance entitlement from your 'review' date.

Provisions for a 'carer' to be included in the calculation of the LHA bedroom rate

From the 1st April 2011 an extra bedroom will be awarded if the Local Housing Allowance claimant or partner requires 'overnight' care from a non-resident carer and a bedroom is available for thier use.

If you feel that you may be entitled to an extra 'bedroom' in your LHA bedroom rate calculation please contact us on 01246 242436.

Who does LHA affect?


LHA applies to:

  • Claimants who claimed for the first time after the 7th April 2008;
  • Claimants who have changed address after the 7th April 2008; (Please note that this also includes people who have changed rooms within the same property)
  • Claimants who are reclaiming after a gap in their claim of at least one week;

LHA does not apply to:

  • Existing Housing Benefit claimants (who do not fall under any of the above);
  • Tenants of Housing Associations or other Social/Charitable Landlords;
  • Council Tenants;
  • Tenants who live in Hostels (NACRO)/Houseboats/Mobile Homes or Caravans;
  • Tenants whose tenancy began before 1989;
  • Tenants whose rent includes a substantial element of Board/Lodging;
  • Tenants in shared ownerships;
  • Any letting that is 'exempt' accommodation; (where the care, support or supervision provided by the Landlord and is on a more than 'minimal' basis)
  • All 'non-LHA' tenants will continue to be assessed under the 'pre LHA' Housing Benefit scheme.

Who decides the LHA rates?


The LHA rates are decided by the Rent Officer. This was also the case with the 'pre April 2008' Rent Officer Decisions. The Rent Officer looks at the rates each month, although this does not necessarily mean that they change every time. The figures are then passed through to us to advertise to our customers and to use in the assessment of claims.

How are my LHA rates worked out?

The amount of LHA you receive is determined by:

  • The area you live in, this is known as the Broad Marker Rental Area (BRMA); and
  • Who lives in your House with you, known as the size criteria.

Current LHA Rates

What are Broad Rental Market Areas (BRMA)?

Pre April 2008 the Authority was required to refer your rent to the Rent Officer to determine the maximum (eligible) rent that should be used in your claim. The 'Rent Officer Decisions' were determined on an individual property basis.

For LHA purposes the Valuation Office Service no longer value properties on an individual basis. Instead the LHA rates are set by establishing the average (median) rent charged by Landlords, based on the size of the property and the area it is located.

How much LHA will I get?


In order to determine this you will need to calculate several factors.

  1. Your Size Criteria: This will tell you the Bedroom rate that you require for LHA purposes. To work out your size criteria please use the File Iconbedroom calculator.
  2. The BRMA that your property is located in: You will need to insert the post code of the property you will be claiming for. You will need to select the Bedroom Rate (that you have already worked out above) and the month that you wish to know the LHA rate for from the drop down.
  3. Benefits Calculator: Once you have determined your LHA rate you can then use the Benefits Calculator to input your income and LHA rate. From this you will be able to obtain an estimate of any Benefit that you may be entitled to.

Please note that any figures given are for guidance purposes only and in no means constitute an actual benefit assessment.

Will my LHA rate remain the same throughout my claim?

Your LHA rate will be reviewed after a year, on the anniversary of your LHA start date. Upon review your LHA will be amended to the current rate of LHA, based on your household circumstances.

However, if you have a change in circumstances that requires the LHA rate to be amended before that date, the change of circumstances date becomes your annual review date.

Any changes that means you are entitled to more or less bedrooms will lead to a review of your LHA rate. Examples of changes in circumstances that would lead to an LHA review are:

  • A single claimant turning 25;
  • A Partner joining or leaving the Household; (if you are aged under 25)*
  • The birth of a new baby;
  • A Child or Non-Dependant Adult joining/leaving the Household;
  • A Child turning 10 or 16 years old.

* If you are aged over 25, a Partner moving in or out will not affect the LHA rate that is payable to you. This is because the 'One Bedroom Rate' is applicable to both couples and single persons aged 25 and over. For single people, aged under 25, only the 'Shared' room rate of Local Housing Allowance is payable.

If the LHA rate is reviewed then the next annual review date will be one year after the LHA rate was changed.

Size Criteria


The LHA rate is based on the number of bedrooms required by the household only. A claimant is entitled to one bedroom each for:-

The claimant (and Partner if applicable);
Any other adult aged 16 or over;
Any two Children under 16 of the same sex;
Any two Children regardless of sex under the age of 10;
Any other Child.
If you would like to calculate the number of bedrooms that your family would be entitled to under Local Housing Allowance Regulations please click here.

How much can a single person under 25 get?

If you are a single person, aged under 25, you can only get the lowest rate of Local Housing Allowance. This is referred to as the 'Shared Accommodation' rate. This applies regardless of the type of property that you actually live in.

You may also only qualify for the 'Shared Accomodation' rate if you are aged over 25 and part of a couple (with no children) that lives in 'Shared Accommodation'.

'Shared Accommodation' is defined to be having the exclusive use of only one bedroom, and sharing the use of one or more of a: Kitchen, Bathroom or Toilet

What if my LHA is higher than my rent?

If your LHA rate is higher than the amount of rent that you are liable to pay, then you are able to keep the difference up to a maximum of £15.00 per week.

This is called 'excess' benefit. This money you can spend as you choose, and will not be taken into account when assessing any means-tested benefits.

Even if your Local Housing Allowance is paid to your Landlord or Agent the 'excess' benefit will be paid to you. This is unless your Landlord requests direct payments of 'excess' benefit because you have arrears on your rent account.

What if I have service charges included in my rent?

LHA takes no account of any services or charges included in your rent. No deductions are made from your LHA for these.

How will LHA be paid?

LHA, wherever possible, will be paid to you. We are unable to pay Housing Benefit into a Post Office account. You will need to have a Bank or Building Society Account.

Local Housing Allowance must be paid to you, unless you are; unable to manage your finances, you are unlikely to pay your rent or you are the equivalent of eight weeks or more in rent arrears. This is referred to as being a 'vulnerable' tenant.

Therefore, if you do not have a bank account, you will need to open one in order to receive your benefit. Basic bank accounts are available from many of the banks throughout the local area.

Can my LHA still be paid to my Landlord?

Yes, but only in exceptional circumstances. These include:

  • You are unable to manage finances. (Including: learning disabilities, medical conditions, addiction to drugs, alcohol or gambling, illiteracy, severe debt problems, inability to speak English, unable to deal with affairs and being unable to open up a bank account).
  • You are unlikely to pay your rent. (Including: having existing debts, a past history of bad debts, poor payment history to the Council, CCJ's, an history of rent arrears, previously absconding from a property leaving rent arrears).
  • You are eight weeks or more in rent arrears. If you are eight weeks or more in rent arrears then the decision regarding whether LHA should be paid to you or your Landlord is not discretionary. In such cases, Housing Benefit must be paid to your Landlord or Agent, unless we consider that it is in your overriding interest for us not to pay your Housing Benefit directly to your Landlord. It is for you to demonstrate that it is in your best interests for Housing Benefit to continue to be paid to you, if you are more than eight weeks in arrears. We would require evidence of a 'specific' reason for your rent account being in arrears, for example a letter from your Solicitor confirming that you have commenced legal proceedings regarding essential repairs that have not been carried out by your Landlord.

If your Landlord contacts us, requesting direct payment of LHA because you have rent arrears of eight weeks or more, we will request proof of the amount of your rent arrears. If the amount of arrears on your rent account is confirmed to be in excess of eight weeks or more we will pay your Housing Benefit directly to your Landlord. Housing Benefit will revert back to you once the arrears have been cleared.

Even if the payment of Housing Benefit goes to your Landlord/Agent, any 'excess' benefit you are entitled to will still be paid to you.

However, your Landlord can also request direct payment of your 'excess' benefit, to them, in order to clear your rent arrears.

If you feel that any of the above explanations apply to you, and you would like to request that Local Housing Allowance be paid directly to your Landlord please complete our 'application Document icon for Local Housing Allowance to be paid to Landlord' form. You can also contact us and request a copy of this form on 01246 242436.

What if I am awarded Backdated Benefit?

Your Housing Benefit claim will be assessed based on the amount of LHA that is applicable at the 'start' of your claim.

If you apply for backdated benefit, and we consider that 'good cause' has been proven to backdate your claim, the 'start' of your claim will change.

This may mean that the Local Housing Allowance rate, that should be used in the assessment of your claim, may change. This will only apply if the backdated benefit start date is a different month to the normal start date.

The amount of LHA that will be used to assess your claim will be the amount that is applicable in the month that your claim is 'commenced' from, should this be the 'backdated' month or the 'normal' month.

Your appeal rights


You can not appeal against the LHA rate itself. This is a flat rate, which is used for all similar sized properties in the area. The rates are determined by the Valuation Office, which is independent to us, for us to use in the assessment of your claim.

However, you can appeal if you think that we have used the wrong level (i.e. - Bedroom rate) of LHA in the assessment of your claim. For example; You believe that you are entitled to more 'bedrooms' than we have allowed when assessing your claim.

You can also appeal against a decision over who LHA will be paid to.

All appeals must be received, in writing, within a calendar month of the date of our decision. You should accompany your request with evidence and reasons as to why you do not agree with our decision.

Further information can be found about the appeals process.

If you have any questions regarding Local Housing Allowance you can contact us at LHABenefits@bolsover.gov.uk or on 01246 242446.

Last Updated on Thursday, 22 March 2012 10:40

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