Local Housing Allowance

From 7 April 2008, the way housing benefit is calculated for some claimants will change. The new benefit will be called Local Housing Allowance (LHA)

If you rent a property from a local council, housing association or charity , the way we calculate your benefit will not change.

If you live in a hostel, caravan, houseboat or mobile home, the way we calculate your benefit will not change.

If you rent a property from a private landlord, the way we calculate your benefit will only change if you

• make a new claim for housing benefit
• move address
• have a break in your claim of at least one week

How Local Housing Allowance is Decided

The LHA amount is decided monthly by The Rent Service.

The Rent Service gather lettings information for properties within at least two set local areas. The areas are where you could reasonably be expected to live. This is called a Broad Rental Market Area (BRMA).

The Rent Service separate all rents within a BRMA into categories based on the number of bedrooms in the property. The LHA for each size of property is decided by the middle rent on the list in each category.

To find out what the BRMA is for your property, click on the LHA Direct link on the right under useful websites.

How Benefit is Calculated

Other than using an LHA for the maximum rent payable on each claim, there is no change to the way we calculate benefit entitlement.

We can only use the LHA for the number of bedrooms the family need. We decide who to count as part of the family. For example, we do not count children who only visit, however often and whose usual home is elsewhere. We also do not count foster children.

The number of bedrooms a family needs is decided in the following way:

One bedroom for each of the following, counting each person once only, in the first group they come into.

• a couple
• someone who is 16 or over
• two children of the same sex
• two children who are younger than 10
• a child (a 'child' is someone who is younger than 16)

To calculate the number of bedrooms that can be included, click on the LHA Direct website link on the right under useful websites.

How Much Benefit Can Be Paid

If LHA is lower than the rent, the tenant is responsible for paying the shortfall

If LHA is higher than the rent, the tenant will receive the difference up to £15.00 per week. Other benefits that the tenant claim will not be affected by the extra LHA payment.

How Payments are Made

Payments will be made directly into the tenant's bank account, four weekly in arrears. We will not normally pay the landlord or agent.

Where to Get More Information

Answers to Frequently Asked Questions can be found by clicking on the link on the right under Do it Online.

Visit the Rent Service website or LHA Direct by clicking the links on the right under Useful Websites.

Where to Get Help

You can always contact us for help and advice. Click on the link on the left under Main Menu for more details about how to contact us.

For a helpful contact list, click on the link at the bottom of this page under Downloadable Documents.

How to Comment on Our Service

You should contact us. We would like to know what you think about this website, or about the service we provide to you. Click on the link in the main menu found on the left-hand side of this page for more details about how to contact us or email us benefits.service@islington.gov.uk