What is Local Housing Allowance?
Tenants receive a Local Housing Allowance rate based on the area in which they live and the number of occupiers in their property.
Payments are issued directly to the tenant rather than the landlord either by cheque or directly into a bank account.
Iif a tenant's rent is less than the Local Housing Allowance rate that applies to them, the maximum of amount of Housing Benefit they can possibly receive is the amount of rent they are charged.
The main aims of the Local Housing Allowance (LHA) scheme are:
- Fairness: LHA is designed to pay the same amount of benefit to tenants with similar circumstances living in the same area.
- Choice: It allows tenants to trade and choose between the quality and price of their accommodation.
- Transparency and simplicity: It allows tenants to find out in advance how much benefit they will receive and complicated rent officer referrals are no longer needed.
- Personal responsibility: As Local Housing Allowance is paid directly to tenants it encourages them to take responsibility for their own financial affairs and paying their rent themselves.