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What is the Local Housing Allowance?

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If you are a private tenant renting property or room from a private landlord and you are on a low income, you may be able to claim and receive Local Housing Allowance (LHA).

What is Local Housing Allowance?

  • It is a new way of working out Housing Benefit based on the area you live, the number of people living with you and the household size.
  • It helps towards your rent if you are on low income
  • It is a much fairer way of calculating Housing Benefit, as it makes sure that tenants in similar circumstances in the same area receive the same amount of financial support for their housing needs.

    You will get Local Housing Allowance if:
  • You are a new benefit claimant
  • If you are currently receiving Housing Benefit, your claim will remain unchanged unless you start a new tenancy, or your circumstances change. When this happens your claim will be considered using the Local Housing Allowance.


What else should I know?

You cannot get Local Housing Allowance if any of the following apply to you:

  • you are a council or housing association tenant
  • your tenancy started before 1989
  • you live in a caravan, mobile home or house boat

But you may still be able to get Housing Benefit to help with your rent. You can find out more about this from the council's Housing Benefit Service. Local Housing Allowance does not cover all housing costs. Because the amount of Local Housing Allowance you may get is fixed you can work out what rent you can afford. So when you look for somewhere to live you can work out how much money you will have. Then you can choose a place that suits your circumstances.

Local Housing Allowance will usually be paid directly to you, not your landlord. You will receive payment either straight into a bank account or by cheque. It is up to you to make sure that your rent is paid to your landlord. If you do not pay your rent, you could be evicted from your home.

If you live with a partner, only one of you can get Local Housing Allowance. There are special rules if you are single and aged under 25 years or a childless couple sharing accommodation.

You cannot usually get Local Housing Allowance if you are a full-time student, unless you are disabled or have children.


How much will I get?

The amount of Local Housing Allowance you can get depends on:

  • who lives with you
  • what area you live in
  • how much money you have coming in
  • how much savings you have.

Local Housing Allowance does not depend on how much rent you pay. The Local Housing Allowance rates may be different for each area. These rates are not set by the council but are based on local rents. If your rent is the same as Local Housing Allowance you will usually get any Local Housing Allowance paid to you and you will have to pay your rent to your landlord.


Acknowledgements

Information contained here is also available on the Department of Works and Pensions (DWP) website .

Also see Directgov website for more details.

For more information on how Newham processes this new allowance contact the Council's Benefit Service directly.

Download this information as a handy fact sheet.

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