Housing Benefit for tenants of private landlords

What is Local Housing Allowance?

Local Housing Allowance (LHA) is help with the cost of rent and takes the place of Housing Benefit for most private tenants after April 2008. By ‘private tenant’ we mean somebody who rents their home from a private landlord.

When we calculate your Local Housing Allowance, the figure we use for your rent is either your rent, or a fixed amount based on where your property is and the number of bedrooms you need, whichever is the lower. The fixed amount is the maximum we can use in the calculation, even if the rent you pay is higher.

This fixed rate is the maximum figure that can be used to calculate Local Housing Allowance. However, the amount of Local Housing Allowance you get will depend upon your income, capital (such as savings) and if you have other adults living with you.

How to apply

You apply for Local Housing Allowance in the same way as for Housing Benefit and Council Tax Benefit. Just follow the links for applying for Housing Benefit.

» More about applying for Local Housing Allowance

Who is Local Housing Allowance for?

Local Housing Allowance is for private tenants who:

  • Move in, on or after 7 April 2008
    or
  • Make a new claim for Housing Benefit on or after 7 April 2008

Who cannot get Local Housing Allowance?

You cannot get Local Housing Allowance if:

  • You are a private tenant who is already getting Housing Benefit (unless you move or have a break in your claim, on or after 7 April 2008) as you will continue to get your Housing Benefit
  • You are a council tenant
  • You are a tenant of a housing association (in most cases)
  • You are living in bed and breakfast accommodation
  • You live in a caravan, mobile home or house boat
  • Your tenancy started before 1989; or
  • You live somewhere where you are provided with care, support or supervision

Rather than Local Housing Allowance, you may be able to get Housing Benefit instead.

Local Housing Allowance may not apply if your rent includes an amount for meals. The Valuation Office will decide if this applies to your rent.

How much Local Housing Allowance will I get?

Your Local Housing Allowance will depend on:

  • The area you live in
  • Who lives with you
  • The number of bedrooms you and your family need (up to a maximum of four bedrooms); and
  • Any savings or money you may have coming in

The number of bedrooms you need

The rules say how many bedrooms you and your family need. You will need one bedroom for:

  • Every adult couple
  • Any other adult aged 16 or over
  • Any two children of the same sex aged under 16
  • Any two children regardless of their sex aged under 10; or
  • Any other child aged under 16
  • A carer - from April 2011, to help disabled people who have a carer who stays overnight but does not normally live with them. This change means that if you rent a property with an extra bedroom for your carer, we will take that extra cost into account, up to the 4 bedroom limit.  

5 or more bedrooms

New claims after 1 April 2011

From 1 April 2011, Local Housing Allowance for new claims is paid for a maximum of 4 bedrooms, and is capped at £400 per week.

This means that even if you need more than 4 bedrooms, or your rent is above £400 per week, the most LHA we can pay you is the LHA for a 4 bedroom property and no more than £400 per week.

Existing claims at 1 April 2011

If you are already getting LHA based on 5 or more bedrooms, we will review your claim on the 12 month anniversary of your claim. However, if this review means your LHA rate will go down, you may get temporary protection for up to 9 months:

When we calculate your benefit, we will use the protected (higher) rate of LHA until:

  • 9 months after your anniversary date. After this date we will recalculate your benefit based on the new lower LHA rate
    • This means that 9 months after your anniversary, your benefit will go down
  • There is a change in your household and you become entitled to a property with more bedrooms (up to the 4 bedroom limit) and the LHA for that size of property is more than the protected LHA rent
    • This means you will get more benefit
  • You become entitled to a property with fewer bedrooms. Your protection will usually end from the Monday after the change
    • This means your benefit will usually go down from the Monday after the change
  • You change address
    • Your benefit will go down from the date of the move
  • Death of a relevant person, as special rules determine the eligible rent

The area you live in

The independent Valuation Office will split the borough into different areas called Broad Rental Market Areas (BRMAs). Within your Broad Rental Market Area, the amount of Local Housing Allowance will be the same for each household that needs the same number of bedrooms.

» Find out which broad rental market area your property is at the Valuation Office Agency Website.

The Valuation Office reviews the Local Housing Allowance rates and sends the council an updated list each month.  

The set rates of Local Housing Allowance will be published each month throughout the Council and on the Council’s website, so customers and landlords will always know what the current rates are.

Amount of Local Housing Allowance

We use the Local Housing Allowance as the rent figure when we calculate your Housing Benefit. But as Housing Benefit is based on your income, capital (such as savings) and family circumstances, the benefit you get may be less than the Local Housing Allowance.

If your rent is more than the Local Housing Allowance, you will normally have to pay the difference yourself, unless you can agree a lower rent with your landlord, in which case you must tell us. However, you may be able to claim extra help in special cases. This is called a Discretionary Housing Payment (DHP).

» More about Discretionary Housing Payments

We may be able to pay your rent direct to your landlord in return for agreeing a rent that is closer to LHA levels for that size of accommodation.

» More about who we pay LHA to

Shared Accommodation Rate - for people under 25/35

Single people under 25 (until January 2012)

The following applies if:

  • You are single
  • Under the age of 25
  • Don't get severe disability premium
  • You are entitled to Local Housing Allowance

When we calculate your benefit, the maximum rent figure we can use is the Shared Accommodation Rate of Local Housing Allowance. We cannot consider the actual size of your property, or use the rent you pay if it is more than this rate.

However, this rule will not apply if:

  • You have a partner, or
  • A non-dependant adult lives with you, or
  • You are getting Child Benefit  for a child in your care, or
  • You qualify for certain disability benefits, or
  • You are aged under 22 and have been in care

Single people under 35 from January 2012

From January 2012, the age threshold for the Shared Accommodation Rate in Local Housing Allowance for single claimants who do not get severe disability premium will be increased from 25 to 35 years. This change will also apply to single people under 35 who were getting housing benefit under the previous housing benefit scheme before LHA.

This means that the maximum benefit that we can pay a single person under 35 will be limited to the rate for a single room in a shared property or a bedsit, even if they live in a self-contained property such as a one-bedroom flat.  

What is the shared accommodation rate?

The Shared Accommodation Rate is based on the tenant having sole use of a bedroom or bedsit, and shared use of some or all of the facilities, for example a kitchen, living room or bathroom and toilet.

Local Housing Allowance rates

The amounts of Local Housing Allowance are set by the independent Valuation Office Agency and are reviewed each month.

Rates for February 2012

Weekly LHA rates for Waltham Forest
Number of bedrooms Outer North East London Outer East London
Shared accommodation rate £69.27 £69.27
1 bedroom self contained £150.00 £170.00
2 bedrooms £185.00 £207.69
3 bedrooms £229.85 £255.00
4 or more bedrooms £300.00 £300.00

Monthly LHA rates for Waltham Forest
Number of bedrooms Outer North East London Outer East London
Shared rate £300.17 £300.17
1 bedroom rate £650.00 £736.67
2 bedroom rate £801.67 £899.99
3 bedroom rate £996.02 £1105.00
4 or more bedroom rate £1,300.00 £1,300.00

LHA rates for earlier months are available on the Valuation Office Agency website. You will need to search for the Outer East London or Outer North East London rates.

From April 2011, Local Housing Allowance is limited to a maximum of 4 bedrooms.

  • If you claimed on or after April 2011 the maximum LHA rate we can use when calculating your benefit is the rate for 4 bedrooms, even if your home has 5 or more bedrooms.
  • If you were getting LHA for 5 or more bedrooms before April 2011 then from the anniversary of your claim the new 4 bedroom rate will apply. It may also start to apply immediately if you move or following certain other changes, for example if someone moves into or out of your home.  

How is Local Housing Allowance paid?

Local Housing Allowance is usually paid to you and not to your landlord.  You cannot choose to have it paid directly to your landlord.  However, in very special cases, we may pay it to your landlord, for example if you owe at least eight weeks rent.

Opening a bank or building society account

The easiest way is receive your Local Housing Allowance is to have it paid into a bank or building society account. If you have a bank or building society account, you can arrange for your bank or building society to pay your rent direct to your landlord.

If you don’t have an account you may want to open one.  The main types of bank account are a:

  • Current account at any bank or building society; or
  • Basic bank account

To open a bank or building society account , get in touch with the bank or building society you have chosen. You can visit the branch in person or in some cases you can do it by phone. You will need to provide proof of who you are and where you live. The bank or building society will tell you which documents they accept. Typical things are a:

  • Current passport
  • Full current driving licence
  • Recent Council Tax or utility bill
  • Letter from a government department or a local authority confirming a right to state benefits such as Pension Credit, Child Tax Credits, Income Support, Housing Benefit or Council Tax Benefit.

Tell the bank you need an account that money can be paid into directly. If you want an account that you can access from your local Post Office, make this clear.

Tell the bank if you want a basic bank account and ask for it by name.  You do not have to pay a minimum amount into this type of account each month and they do not have overdraft facilities so there is no danger of running up debts or charges.

Who is Local Housing Allowance paid to?

Local Housing Allowance is usually paid to you and not to your landlord. However, we may be able to pay it direct to your landlord in special cases.  

When we can pay your LHA direct to your landlord:

  • If paying your Local Housing Allowance direct to your landlord will help you keep or secure a tenancy in return for the landlord agreeing a lower rent that is close to the Local Housing Allowance level
  • If we think you are likely to have difficulty managing your own affairs
  • If we think you are unlikely to use your Local Housing Allowance to pay your rent
  • If you have eight weeks or more rent arrears
  • If you are having deductions made from your Income Support, Jobseekers’ Allowance, Employment and Support Allowance or Guarantee Credit to pay off rent arrears
  • If you qualify for backdated Local Housing Allowance or there has been a delay in processing your claim and a large amount of benefit is to be paid. In these cases we can decide to make the first payment of LHA by cheque payable to your landlord, although it will be sent to you

Rent arrears

We will normally pay your Housing Benefit to your landlord if:

  • you have eight weeks or more rent arrears or
  • you are having deductions for rent arrears taken from your Income Support, Jobseekers’ Allowance, Employment and Support Allowance or Pension Credit

The landlord must provide evidence to show the rent that was due, any payments that have been made, and the amount of rent still  outstanding.

Landlords are encouraged to contact the Benefit Service when rent arrears are equal to five weeks’ rent to give us time to gather information before the arrears reach the equivalent of eight weeks’ rent.

If you want to tell the Benefits Service that your tenant is in arrears with their rent, please download the Landlord Rent Arrears form (62KB Word file) then complete and return it to us with supporting evidence.  

“Safeguard”

“Safeguard” is used where direct payment of Housing Benefit to the landlord helps claimants who might not otherwise be able to pay their rent themselves. The direct payment is a safeguard to ensure rent is paid on time and the claimant and their family can continue to live in their home.

The Council can pay Housing Benefit to the landlord for up to eight weeks while it is gathering information to help it decide who to pay Benefit to.

Some of the groups included in the safeguard policy are people:

  • With learning difficulties
  • With medical conditions that seriously affect their ability to manage on a day to day basis
  • Who are unable to read, write or speak English where this affects their ability to manage their financial affairs
  • With addictions to drugs, alcohol or gambling where this affects their ability to manage their financial affairs
  • Who have experienced recent changes and as a result need additional support in managing their affairs
  • Who are receiving help under the Supporting People scheme  
  • With a history of homelessness and / or rough sleeping who are receiving help to sustain a tenancy in the private sector
  • Who are receiving help from a homeless charity
  • With severe debt problems or recent County Court Judgements
  • Who are unable to obtain a bank account, including people who are physically unable to open an account
  • Who have deductions from their Pension Credit, Income Support, Employment and Support Allowance or Jobseeker’s Allowance for housing costs – housing costs include service charges and utility bills, which are part of the rent

This list is not exhaustive. Each case will be looked at on its own merits.

» More information about our safeguard policy (56KB Word file)

How long will my Local Housing Allowance last for?

Once your Local Housing Allowance has been calculated, it applies from the start date of your claim and lasts for one year unless a review is triggered by one of the following:

  • A change in your circumstances which affects the number of bedrooms you are entitled to, for example:
    • a child sharing a bedroom reaches 16
    • someone joins or leaves the household and this changes the number of bedrooms you need
  • A death in the household
  • A change of address

If there have been no changes in your circumstances, we will automatically recalculate your Local Housing Allowance one year after the start date, or one year after the last anniversary date. Your new benefit will be based on the Local Housing Allowance rate in force at the time.

What if I need more information?

If you want advice on housing benefit or local housing allowance, on how this will affect your benefit, or you want information about opening a basic bank account, please contact us: