Local Housing Allowance
Local Housing Allowance (LHA) - is a new form of housing benefit
for private tenants which came into effect from 7 April 2008.
Payment is made to the tenant, who then pays the landlord. Council
tenants are not affected by the LHA and will continue to receive
housing benefit.
The amount of money you'll receive is based on:
- the area you live in
- who lives with you
- the money you and your partner have coming in, including
earnings, some benefits and tax credits and things like
occupational pensions
- your savings and your partner's savings
It doesn't depend on how much rent you pay. If your rent is
higher than Local Housing Allowance, you'll need to make up the
difference. And if your rent is lower than Local Housing Allowance
you can keep the difference (up to £15) - this won't affect other
benefits you may be getting.
Why the change?
The original housing benefit system was too complicated, and so the
government has introduced Local Housing Allowance as a fairer,
clearer system that gives tenants a choice over where they live,
and personal responsibility for their rent. The Department for Work and Pensions (external
link) website outlines the aims of LHA.
Local Housing Allowance link
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