Local housing allowance

Local Housing Allowance
Local Housing Allowance (LHA) - is a new form of housing benefit for private tenants which comes 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 is introducing 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 website outlines the aims of LHA.