Local Housing Allowance
The Housing Benefit rules changed in April 2008 with the introduction of Local Housing Allowance (LHA). The scheme is designed to be a fairer and simpler way of working out Housing Benefit for people on low income and need help to pay their rent.
What is LHA?
LHA is a flat rate allowance based on the rent levels for the area in which the person lives and how many people live with them, not the actual rent charged. Prospective tenants will be able to shop around with their allowance. If they find a property they like with a rent that is more than the LHA then they will know how much extra they will have to pay. If they find somewhere cheaper than the LHA they will be able to keep up to £15 per week of the difference.
Current Rates
The LHA rates are updated each month - for the current rates click here.
How will LHA be Paid?
Claimants will no longer have the choice of direct payments to their landlord.
LHA will be paid directly to the customer and they will have to make arrangements to pay their landlord. Payments will normally be made direct into a bank account which means the payment will be secure and not subject to postal delays.
In exceptional circumstances we make payments to landlords. This will only happen if there are compelling reasons for us to do so. 
Click here to review our Safeguard Policy. If you would like us to consider making direct payments, please contact us.
Who will not be affected by LHA?
The new rules will not apply to:
- People who rent their property from a Housing Association;
- People whose tenancy started before 1989 or who have a registered fair rent;
- People who receive care and support;
- People who live in hostels, caravans, mobile homes or houseboats; and
- People whose rent includes meals.
Useful Websites:
More information can be found on the Department for Work and Pensions website and also on The Rent Service website.
Further Information
Download our information leaflet.
