Article: Local Housing Allowance Article Body What is local housing allowance? The local housing allowance (LHA) scheme was introduced nationally on 7 April 2008 and is the way we work out housing benefit for tenants in privately rented accommodation. The LHA is the maximum flat rate allowance decided by the Rent Service and is dependent upon the size of the property you need. Different LHA rates apply to areas known as Broad Rental Market Areas (BRMAs). Barnsley has four BRMAs each with its own set rate although the majority of properties fall within the Barnsley area. Who does local housing allowance apply to? LHA generally applies to claims from tenants of a private landlord including: new claims for housing benefit change of address claims including moving rooms or flats in the same property claims following a break in benefit of a week or more LHA does not apply to you if: your tenancy started before 1989 you are a Berneslai Homes tenant you are a housing association / registered social landlord tenant you live in supported housing you live in a caravan, houseboat or a hostel the Rent Service has decided that a large part of your rent is for board and attendance Changes to the LHA scheme from 1 April 2011 Some of the rules which apply to LHA were changed from 1 April 2011: an end to the extra housing benefit (up to £15 per week), where the rent is less than the LHA rate for that size of property the LHA rates were reduced local housing allowance is limited to the four bedroom rate. This is the most you can get, even if you live in a five bedroom property These changes apply to customers making a new claim from 1 April 2011. If you were already receiving housing benefit on 1 April 2011, the changes will affect you in the following ways: if you are already receiving an extra amount of housing benefit, you will continue to receive it until the anniversary date of your claim the reduced LHA rates will not normally affect you straight away. If your circumstances don't change, you will receive nine months protection from the changes after the anniversary date of your claim What size of property can I claim for? LHA rates are broken down into room rates which apply depending on the number of household members occupying the property. We decide how many rooms you need according to the following criteria: One bedroom is allowed for the following people: a couple someone who is 16 or over two children under age 10 two children of the same sex under 16 any other child from 1 April 2011 an additional bedroom for a non-resident carer can be allowed where you or your partner require overnight care From April 2011 the maximum number of rooms that a family can receive LHA for has been restricted to four bedrooms. If your family requires five bedrooms or more, your LHA will be calculated on the four bedroom rate. Aged under 35 or living in shared accommodation If you are aged under 35 and live on your own or you live in shared accommodation we use the shared accommodation rate to calculate your local housing allowance. From 1 January 2012 the shared accommodation rate was extended to people under 35 living on their own who rent from a private landlord. If you are aged between 25 and 34 and were already receiving housing benefit on 1 January 2012, you will move to the shared accommodation rate: at the end of the nine months protection period if you are receiving protection from the April 2011 changes on the anniversary of your claim, if you made a claim on or after 1 April 2011, but before 1 January 2012 Exemptions from the shared accommodation rate If you are under 35 and live alone, the shared accommodation rate does not apply to you if you are: Under 35, living in shared or self contained accommodation and: get the severe disability premium in your benefit because you are entitled to the middle or higher rate care component of the Disability Living Allowance you are a care leaver under the age of 22 Aged 25 to 34, living in self contained accommodation and: have spent at least three months in a homeless hostel or hostels specialising in rehabilitation and resettling within the community (to benefit from this exemption you need to have been offered and accepted support services to enable you to be rehabilitated or resettled in the community) are managed under active multi-agency management under the Multi Agency Public Protection Arrangements (MAPPA) If you would like to work out the number of bedrooms you require please see the LHA Direct website Which LHA rate applies to me? The LHA that your housing benefit is based on will be the rate at the date you make your claim. Although the LHA rate is the amount used in the calculation of your housing benefit, it is not necessarily the amount you will receive as this is dependent on your income, savings and personal circumstances. For further details please click local housing allowance rates. What if my rent is different to the LHA rate? The LHA rate is the maximum amount you can get. If the LHA rate is less than your rent then you will have to pay any shortfall to your landlord or try to negotiate a lower rent. Will my LHA rate change? The LHA rate will be reviewed every twelve months unless there has been a change in circumstances which means we have to apply a different LHA rate sooner. Things that may change the LHA rate are: people coming to live with you people moving out children reaching the age that means they need their own room What if my rent changes? Increases to your rent will not change your LHA rate but you must still inform us of all changes in your circumstances that could affect the amount of benefit you get. This includes changes to your rent. See housing benefit change in circumstances for more information about the changes you need to tell us about. How do I claim? If you are making a new claim please see new claims for housing benefit for details of how to claim. Payment of local housing allowance Benefit payments will normally be made direct to the tenant. We cannot make payments to your landlord other than in exceptional circumstances. The quickest and safest way to receive your benefit is for it to be paid directly into your bank/building society or credit union account. If you do not have a bank/building society or credit union account and would like further information on opening such accounts, please ring our benefit helpline on 01226 774743. You can also get help and advice from the Citizens Advice Bureau about how to open a bank account. It is recognised that some tenants may struggle with the responsibility of paying their rent. Safeguards have been put in place to ensure that, in special circumstances, we may consider paying your benefit direct to your landlord. From April 2011 we can also pay your benefit straight to your landlord if they help you get a new tenancy, or keep your current one, by charging a reduced rent that you can afford. The rent must be at or near the LHA rate that applies to you and you must demonstrate that you can afford any shortfall. Further details can be found within the safeguards policy. Application forms Housing and council tax benefit application form Housing and council tax benefit application form - guidance notes Change of address form Declaration to disclose information to landlord form Request for direct payment to landlord Request for payment into a bank account 8 weeks in arrears form Related documents Safeguards policy Service standards Landlord newsletters Local housing allowance rates Legislation Housing Benefit Regulations 2006 Council Tax Benefit Regulations 2006 Housing Benefit (persons that have attained the qualifying age for state pension credit) Regulations 2006 Council Tax Benefit (persons that have attained the qualifying age for state pension credit) Regulations 2006 Data Protection Act 1998 Contact details Enquiries and requests for application forms can be made as follows: E-mail: benefitassessments@barnsley.gov.uk Telephone the benefits helpline: 01226 774743 Opening hours: Monday to Thursday 9am to 5pm and Friday 9am to 4.30pm Fax: 01226 774733 By writing or sending documents to: Benefits, Taxation and Welfare Rights Division, PO Box 634, Barnsley, S70 9GG By personal visit to any Barnsley Connects office Additional information To learn more about our compliments, comments and complaints process please see general complaints. Related services Council Tax Welfare Rights Homelessness and Housing Advice View your benefit detaills online Benefits calculator Benefit News Page Other useful websites DirectGov-Money,Tax and Benefits Valuation Office Agency (Rent Service) Citizens Advice Bureau Data Protection We will use the information you give on the housing benefit application form and any supporting evidence you send us to process your claim for housing benefit. We may pass the information on to the Department for Work and Pensions and HMRC, as allowed by law. We may also use the information to tell you what other welfare benefits you are entitled to. We may check the information provided by you, or information about you provided by someone else, against other information we hold. We may also ask other agencies, organisations, local authorities or government departments to give us information they have about you to make sure the information is accurate, to prevent or detect crime and to protect public funds.