Local housing allowance claimant information

Questions and answers for claimants

From 7 April 2008, Housing Benefit in the private rented sector is changing, and is being replaced by the new Local Housing Allowance (LHA). The changes will affect how Housing Benefit is calculated and how it is paid.

What is the Local Housing Allowance?

The LHA is a new way of deciding rent payments for people who receive Housing Benefit. It does not replace Housing Benefit. It uses a flat rate allowance based on the number of people you live with and the area you live in to decide the amount of benefit you receive.

Is it a fairer system?

Yes. Tenants with similar circumstances living in the same area will get the same amount of LHA. This is based on the area you live in and how many people live with you. It is not based on the amount of rent you pay.

Who is Local Housing Allowance for?

The LHA is for private tenants on low income. By private tenant, we mean someone who rents a property or a room from a private landlord.

The LHA will not apply if:

  • you rent your property from the Council

  • your landlord is a housing association

  • your rent has been registered as a fair rent

  • your tenancy started before 1989

  • you live somewhere that provides you with care, support or supervision

  • you live in a caravan, mobile home or houseboat.

What are the benefits to me?

By knowing how much you are entitled to before you look for a new place to live, you are able to choose the quality and price of your accommodation. It is up to you how much you want to spend on renting a property.

You can choose to:

  • pay more than the LHA to rent a more expensive property

  • rent a property where the rent is lower than the LHA. The rest can be used for other things

  • look for somewhere suitable where the rent is the same as the LHA.

If you are already renting and do not need, or do not wish to move, you will be in a better position to negotiate future rent increases and any improvements to the property with your landlord.

How is my Local Housing Allowance rate calculated?

Different rates will apply in different areas. Within those areas, the rate will be based on the average rent charged by private landlords for properties of various sizes.

LHA rates will be broken down into 'room rates' that depend on the size of the household, including any non-dependants.

The size of the household will be based on allowing one bedroom for:

  • every adult couple

  • every other adult who is not part of a couple

  • any other adult aged 16 or over

  • any two children of the same sex

  • any two children regardless of sex under age ten

  • any other child.

The number of living rooms, kitchens and bathrooms will be ignored for the purpose of the size criteria.

Where can I find out my Local Housing Allowance rate?

Details of the rates will be available from our website at www.woking.gov.uk or by telephoning the Benefit Service on 01483 755855.

When will my benefit claims be transferred to the Local Housing Allowance rate?

You will continue to receive benefit under existing rules until a change occurs, for example if you have a break in your claim of one week or more, or you move to a different address.

Your benefit will then be transferred to the new LHA scheme. However, if there is a death in the household and the change would result in a reduced allowance, the Council will protect the tenant for 52 weeks from the date of death.

What if my benefit is higher than my rent?

You may keep any of the excess that you are paid, up to a maximum of £15 per week. This excess will not be taken into account when deciding other benefits.

What if my benefit is lower than my rent?

You must make up any shortfall out of your other income. Alternatively, you may choose to move to cheaper accommodation.

However, if you have previously paid your rent without any support from Housing Benefit, for at least the past year, you will be entitled to an initial 13 weeks of benefit that will cover the full rent without any restrictions.

Can my landlord increase my rent?

 

Your landlord can increase your rent at any time, as long as you agree to the increase. If you do not agree with the increase, you should get advice from a solicitor, law centre, Citizens Advice or the Council's One Stop Shop in the Civic Offices.

Your landlord must give you 28 days notice in writing that they are going to increase your rent.

Your landlord cannot increase the rent without your agreement, if the rent has been increased in the last 52 weeks.

Remember, even if your landlord increases your rent, you may only get the same amount of LHA.

What if there is a contracual rent increase in the middle of the year?

The LHA you recieve will not change, even if your rent does. However, your LHA will be reviewed annually.

How will I pay my rent?

Your LHA will usually be paid directly to you. You are then responsible for paying the rent to your landlord. You must agree with your landlord how and when you will pay your rent.

The Council will pay your benefit straight into your bank account. If you do not have an account, you may want to set one up. If you have a bank account there are a number of ways you can pay your landlord. You can:

  • set up a standing order or direct debit

  • pay by cheque

  • pay your landlord with cash withdrawn from the bank.

You should talk to your landlord about how they would prefer you to pay your rent.

You can get advice about opening and using a basic bank account from any bank or building society. Telephone the Benefit Service on 01483 755855 for more information.

What happens if I don't pay my rent?

If you do not pay your rent, your landlord can ask the courts to evict you from your home. Eviction means:

  • you will lose your home

  • you may to have difficulty finding new accommodation, as your landlord is unlikely to give you a reference

  • you will still have to pay the landlord the money you owe and possibly court costs

  • any application to be re-housed could be affected, as you may be considered to have made yourself intentionally homeless.

If you are experiencing difficulties paying your rent, the Council may be able to pay your rent to your landlord. This is normally to safeguard vulnerable tenants and landlords where there are rent arrears of more than eight weeks.

If you are worried about managing your money, or have had problems in the past, please contact the Council immediately on 01483 755855.

How will overpayments be recovered?

The rules on the recovery of overpayments have not changed. Currently:

  • benefit overpaid to a landlord can be recovered from either the landlord or you, as the Council chooses

  • benefit overpaid to you can only be recovered from you.

Most customers will receive benefit directly. Therefore, most overpayments will be recovered from the customer, and not the landlord.

Will appeals against direct payment decisions be allowed?

Yes. Both you and your landlord, as persons affected by the decision, may appeal against any decision about whether or not to pay rent direct. Appeals can also be made against decisions on vulnerability.

What if my circumstances change?

If the number of people living in your household changes or you move to a new address, you need to tell the Council immediately. This is because the amount of LHA you receive may change. Failure to do so may lead to action against you for benefit fraud.

If you require any further information on the Local Housing Allowance, please do not hesitate to contact the Benefit Service on 01483 755855.