Local Housing Allowance (LHA)

Q. Who is affected by the LHA scheme and when will it start?
Anyone making a new claim for Housing Benefit on or after the 7th April 2008 in respect of a tenancy with a private landlord will have their Maximum Eligible Rent for benefit purposes calculated under the new scheme.
Please note that the following tenants are NOT affected by the LHA scheme

Registered social landlord tenancies e.g., Council or Housing Associations
Protected cases, such as tenancies provided by a charity or voluntary body who also provide support services
Tenancies which are excluded from the existing rent restrictions, such as pre 1989 tenancies
Tenancies of caravans, houseboats, mobile homes and hostels
Board and lodge accommodation where The Rent Service (TRS) has decided that a substantial part of the rent is attributable to board and attendance.

This is NOT a full list of all the tenancy types that are exempt from the new Local Housing Allowance scheme.

Q. When does the new LHA scheme affect me if I am already receiving Housing Benefit?
If you are a tenant of privately rented accommodation your Maximum Eligible Rent will continue to be calculated under the current rules. However there are four ways that the current claim will no longer be calculated under the present rules:-

1. Death of claimant leading to a new claim by the surviving partner
2. Following a change of circumstances, where Housing Benefit is reduced to £0.00 due to your level of income or capital or both
3. Move to a new property. (This includes moving from one room to another in shared accommodation)
4. Qualify for an Extended Payment period that ends from 7/4/08 to 5/10/08, only.

When a new claim is received following one of the above events, that new claim will come under the LHA scheme to calculate the Maximum Eligible Rent.

Q. How does the LHA scheme differ from the current Housing Benefit scheme?
The two main areas of change are:-
For those private tenants who do NOT come under the new LHA scheme, they can continue to choose whether to receive their payment of Housing Benefit or have it paid directly to their landlord. For those private tenants who do come under the new LHA scheme, they will NOT have a choice regarding the payment of Housing Benefit. (There is an exception to this rule if the claimant is deemed 'vulnerable', payment may be made direct to the landlord)

For those private tenants who do NOT come under the new LHA scheme, they will continue to have their contractual rent referred to The Rent Service (TRS) with the Rent Officer making a decision as to the Maximum Eligible Rent to be applied to the claim for Housing Benefit. For those private tenants who do come under the LHA scheme, they will have the appropriate rate of LHA based upon the number of bedrooms required and this will be the Maximum Eligible Rent to be applied to their claim for Housing Benefit.

If the appropriate LHA rate (Maximum Eligible Rent) figure is higher than your contractual rent, special rules will then apply- see below

Q. How will the LHA rate (Maximum Eligible Rent) be calculated?
The Rent Service (TRS) (This link will open in a new window)will provide the Council with the Local Housing Allowance (LHA) bedroom rate each month. There will be a set of rates ranging from a shared-room rate up to and including a 5 bedroom rate. The rate you are entitled to will depend on who lives with you. The Local Housing Allowance figure will be the Maximum Eligible Rent figure used to calculate entitlement for Housing Benefit.

Please note that other benefit rules regarding income, capital and members of the household will continue to apply to the final calculation of your Housing Benefit claim to arrive at your level of entitlement.

Q. What is a Broad Rental Market Area (BRMA)?
The BRMA is an area defined by The Rent Service (TRS) (This link will open in a new window)and is an area of residential accommodation within which a person could move and still have access to similar services of a similar standard. South Cambridgeshire District Council will have three BRMA's, namely CAMBRIDGE, BEDFORD and STEVENAGE + NORTH HERTS, though the Cambridge BRMA will cover the vast majority of postcodes in our administrative area.

Q. How many rooms will I be entitled to claim for?
This will depend on the number of people who live with you.
For example a single person under 25 will only be entitled to the LHA 'shared' room rate (Maximum Eligible Rent) figure. If you are 25 or over, with or without a partner and have no children then you will be entitled to the 'shared' rate if you live in shared accommodation or the one bedroom rate if you live in self-contained accommodation. If you and your partner (if you have one) live in shared accommodation whereby you have sole use of two or more rooms in that property you will also be entitled to the one bedroom rate.
For everyone else with children, non-dependants, boarders and lodgers the LHA rate (Maximum Eligible Rent) is based upon the number of bedrooms you are allowed.

One bedroom for:-

Every adult couple in self contained accommodation
Any other adult aged 16 or over
Any two children of the same sex up to and including age 15
Any two children regardless of sex under age 10
Any other child

IMPORTANT - The following are NOT included as part of the family/household unit when calculating the appropriate numbers of bedrooms needed.

Foster children
Dependant children who do NOT live with the parent/guardian for the majority of the time
Joint Tenant(s)

N.B. The number of living rooms, kitchens, bathrooms and other rooms is ignored for the purpose of deciding the appropriate LHA figure (Maximum Eligible Rent)
Example 1. Single person Under 25 years of age in self-contained accommodation = Shared Rate

Example 2. Single person or couple of any age in shared accommodation where he/she only has the sole use of one room and shares all other rooms = Shared rate

Example 3. Single person Under 25 years of age in shared or self contained accommodation who is entitled to the Severe Disability Premium = One bedroom

Example 4. Single person who is 25 years of age or more or a couple of any age in self contained accommodation or shared accommodation where the single person/couple has the sole use of two or more rooms = One Bedroom

Example 5. Couple, with two boys under sixteen years of age = Two bedrooms

Example 6. Lone parent, with a ten year old girl and a nine year old boy = Three bedrooms

Example 7. Couple with two boys, one aged sixteen, the other aged seven and twin girls aged fourteen = Four rooms

Example 8. Lone parent with twin boys aged sixteen, plus a boy aged five, plus a girl aged eleven = Five bedrooms

Q. What are the Rates of LHA? (Maximum Eligible Rent)
The Rent Officer sets the relevant levels of LHA (Maximum Eligible Rent) every month for individuals, couples and families requiring the appropriate number of bedrooms ranging from a shared-room rate up to and including a 5 bedroom rate in each rental area.

Q. What happens if my Contractual Rent is less than the LHA (Maximum Eligible Rent) figure?
Special rules will apply whereby you can possibly receive up to £15.00 per week more Housing Benefit than your actual contractual rent. see EXAMPLE 1 below.

(Special Rule) LHA (Maximum Eligible Rent) figures are not based upon how much rent is actually charged, (Contractual Rent), nor the number of actual rooms in the property in which you live. If the Contractual Rent is lower than the appropriate LHA rate (Maximum Eligible Rent), special rules apply whereby you can possibly receive up to £15.00 per week more Housing Benefit than your actual Contractual Rent.

EXAMPLE 1
Weekly LHA rate = £150.00 Weekly contractual rent = £115.00
Maximum eligible rent to calculate Housing Benefit entitlement is £130.00 per week.

EXAMPLE 2
Weekly LHA rate = £150.00 Weekly contractual rent = £145.00
Maximum eligible rent to calculate Housing Benefit entitlement is £150.00 per week.

EXAMPLE 3
Weekly LHA rate = £150.00 Weekly contractual rent = £165.00
Maximum eligible rent to calculate Housing Benefit entitlement is £150.00 per week.

If the contractual rent is higher than the appropriate LHA (Maximum Eligible Rent) figure, the tenant will normally have to pay the extra cost although in exceptional circumstances there may be extra help available through the Discretionary Housing Payment (DHP) fund.

Please note that other benefit rules regarding income, capital and members of the household will continue to apply to the final calculation of your Housing Benefit claim to arrive at your level of entitlement.

Q. You said the Rent Service would provide LHA figure for up to five bedrooms, what if I qualify for more than 5 bedrooms?
The Rent Service will provide the LHA rate (Maximum Eligible Rent) for more than 5 bedrooms on request. You should contact the Council if you think you will be entitled to more than the 5 bedroom rate.

Q. Will I be allowed additional rooms in determining the LHA figure (Maximum Eligible Rent) if I have a disability or some other reason for needing extra space?
No, you will only be entitled to the number of bedrooms allowed under the LHA scheme rules.

Q. How will service charges affect my claim?
Under the LHA scheme to determine the Maximum Eligible Rent figure that is used as part of the calculation for benefit, no deduction will be made from the Maximum Eligible Rent figure in respect of ineligible service charges such as Water, Heating, etc that are included in your Contractual Rent.

Q, How will Board and Attendance cases be treated?
If a claim for Housing Benefit that comes under the LHA scheme is made on a tenancy that has Board included, then the Council must refer the case to the Rent Service (TRS). The Rent Service will then decide if the Board is a substantial part of the tenancy. If they decide that it is, then the claim will be dealt with under the normal Housing Benefit rules using the Rent Officer's decision in the benefit calculation. If the Rent Officer decides that Board is not a substantial part of the rent then the Maximum Eligible Rent figure for the Housing Benefit claim will be calculated under the LHA scheme.

Q. Under the LHA scheme, how long will the Maximum Eligible Rent figure be applied to my claim when calculating Housing Benefit?
Once your claim has been assessed under the LHA scheme the Maximum Eligible Rent figure will normally last a year counting from the date the claim was made. Normally, if your claim was received in July we would use the appropriate July bedroom rate as shown on the Local Housing Allowance (LHA) monthly rates table. However, if you apply for your claim to be backdated to the month of May and it is allowed, we would then need to revise the LHA bedroom rate (Maximum Eligible Rent) figure being used in your claim to the one published in the Local Housing Allowance (LHA) monthly rates table for May. This may lead to a higher or lower figure.

Q. What happens if my landlord increases my rent?
Nothing. A rent increase would not be a change of circumstances that would require a new LHA figure (Maximum Eligible Rent) to be used in the Housing Benefit calculation.

Q. What happens if someone moves in or moves out of the property?
You must notify the Housing Benefit office immediately as this may change the number of bedrooms used to determine the Maximum Eligible Rent for your claim under the LHA scheme.

Q. What happens if my circumstances change during the year?
If you have a change of circumstances that affects the appropriate number of bedrooms you are allowed, then the LHA figure (Maximum Eligible Rent) can be changed. The new LHA figure (Maximum Eligible Rent) will then last for a year starting from the date the change of circumstances actually occurred.

Q. What will happen if I move home?
If you move home then you may have to complete a new Housing Benefit claim form. The new LHA figure (Maximum Eligible Rent) will depend on the area you move to and the number of rooms you are allowed. The appropriate LHA figure (Maximum Eligible Rent) will normally be applied from the date your claim form is received by the Council or the date of the actual change.

Q. Will you tell my landlord I am claiming benefit?
The Council will not talk to your landlord about your claim unless you have given permission to do so. However if you are in arrears with your rent equivalent to 8 weeks full rent or more, the landlord has the right to ask for direct payments of Housing Benefit and in those circumstances the Council would confirm to the landlord the amount of Housing Benefit you are entitled to.

Q. If I am unhappy with the LHA figure (Maximum Eligible Rent) that has been set by The Rent Service (TRS), can I appeal?
No. You cannot appeal against the LHA figure (Maximum Eligible Rent) as set by The Rent Service (TRS).The appropriate LHA rate (Maximum Eligible Rent) is used for everyone qualifying for that appropriate number of bedrooms in that particular month.

However you will have the right to dispute any decision that the Council has made when calculating your claim. For example you may disagree with the amount of income used by the Council or you may think the Council has made a mistake in the number of bedrooms allowed under the LHA scheme. You can write in to the Council to obtain a written explanation of the calculation or for a review or for an appeal hearing. This must be done within one month of the date of the original decision.

Local Housing Allowance (LHA) scheme & Vulnerable Tenants

Under the LHA scheme, Housing Benefit will normally be paid to the tenant. However we can pay Housing Benefit to the landlord if we decide a tenant is deemed vulnerable.

Q. What do we mean by 'vulnerable'?
By vulnerable we mean someone who may have difficulty managing their money or has a personal or medical condition that affects their ability to physically pay the rent to their landlord. This description of a vulnerable person does NOT relate to someone refusing to pay his or her rent.

Q. Who decides who is vulnerable?
The Council decides if a tenant is vulnerable. We must have evidence that the tenant cannot manage their money or they have personal or medical difficulties. Evidence must usually be in writing. People who can give evidence include:

The tenant
Friends and family of the tenant
The landlord
Welfare Groups (including money advisers)
Social Services
GP
Probation Officers
Jobcentre Plus or The Pension Service

We will work with the tenant in making our decision.

Q. Who might be vulnerable?
There are many reasons why someone cannot manage their money. A vulnerable tenant may be someone who:

Has severe debt problems
Has a recent County Court Judgement against them
Is an un-discharged bankrupt
Is unable to open a bank or building society account
Has some of their Income Support or Jobseeker's Allowance paid direct to the gas, electricity or water company by DWP
Is getting 'Supporting People' help

We may look into whether a tenant is vulnerable or not if the tenant:

Has learning difficulties
Has an illness that stops them managing on a day-to-day basis
Cannot read or speak English
Is addicted to drugs, alcohol or gambling
Is homeless.

There may be other reasons why someone may be deemed vulnerable. If you require more information please write to Housing Benefits Office, South Cambs Hall, Cambourne Business Park, Cambourne, CB23 6EA.

Making a decision
Once we have collected evidence we will decide as quickly as possible if a tenant is vulnerable. We will normally pay Housing Benefit to the tenant while we are waiting for information to make our decision. We will tell a tenant if they are deemed vulnerable for the purposes of paying Housing Benefit directly to their Landlord. We will also write to the tenant and explain the decision.

Reviews and appeals
If the tenant or landlord disagrees with our decision then they can ask us to look at our decision again (this is known as a review or reconsideration), or to appeal against it. Any such request or appeal must be made in writing and be received by us within one month of the date of our decision. In exceptional circumstances, an appeal may be made more than one month after the date of our decision. Please contact us if you have any queries about making an appeal.

Money Advice
Tenants can get advice on how to manage their money from banks, building societies or a welfare organisation such as the Citizens Advice Bureau.

This guide is intended to provide basic information for persons who will be making a claim for Housing Benefit whereby the Maximum Eligible Rent is calculated under the Local Housing Allowance scheme.

Please remember that all references to Local Housing Allowance only relate to claimants whose Maximum Eligible Rent will be determined under the new scheme. If you consider that your tenancy is one contained in the following list your claim for Housing Benefit will NOT come under the Local Housing Allowance rules. Instead, the Maximum Eligible Rent will continue to be calculated under the current rules applicable to Housing Benefit.

Please remember that the following tenancies are NOT affected by the LHA scheme:

Registered social landlord tenancies e.g., Council or Housing Associations
Protected cases, such as tenancies provided by a charity or voluntary body who also provide Support services
Tenancies which are excluded from the existing rent restrictions, such as pre1989 tenancies
Tenancies of caravans, houseboats, mobile homes and hostels
Board and lodge accommodation where The Rent Service (TRS) has decided
that a substantial part of the rent is attributable to board and attendance.

This is NOT a full list of all the tenancy types that are exempt from the new Local Housing Allowance scheme.

View the monthly table showing the bedroom rate that applies to you.

If you have a specific question about LHA please e-mail lha.benefits@scambs.gov.uk (This link will open in a new window)

Visit The Rent Service (TRS) website (This link will open in a new window)