Dundee CAB Site

Issue of the Month

Local housing allowance (LHA)

What is it and how do they calculate my entitlement?

Local Housing Allowance (LHA) is a benefit to help those in privately rented
accommodation pay their rent. This only applies to claims made on or after 7th April
2008. If you are a tenant of the council or a housing association, you will still receive
Housing Benefit.

Under the LHA rules, the local authority does not use the claimant's actual rent to
calculate their benefit. Instead, a rent officer calculates standard LHA figures for
various different types of property in a local area known as a broad rental market
area.

It depends on the number of rooms considered appropriate for the claimant given the
number of people they live with. One bedroom is allowed for each of the following:

* Every adult couple
* Any other adult aged 16 or over
* Any two children of the same sex
* Any two children (regardless of sex) under the age of 10
* Any other child

Please note that single adults aged under 25, will only be eligible for the shared room
rate. This also applies to anyone over 25 who lives in shared accommodation.

Local Housing Allowance is a mean-tested benefit( this means they take your income
into consideration when assessing your eligibility). If you are claiming Income Support
or Jobseekers Allowance, you will be entitled to the full amount of local housing
allowance. If you are working, you may not be entitled to full LHA but still be entitled
to some assistance.

What if my rent is more than the LHA rate?

In some cases, the LHA figure that applies to a claimant may be less than the rent
they are charged by the landlord. In these cases, it is the claimant who will need to
make up the difference. In some cases it may be possible for a claimant to receive a
discretionary payment to assist them in meeting their housing costs.

What is a Discretionary Housing Payment and how do I apply for one?

A local authority can make a discretionary payment to a client who is entitled to some
housing benefit and who appears to a local authority to need further financial
assistance to meet her/his housing costs. These payments are known as
discretionary housing payments. They are not payments of housing benefit. To
claim a discretionary housing payment, a claimant would need to write to Housing
Benefit Department of their local authority.

What if my rent is less than the LHA rate?

In some cases, the LHA figure that applies to a claimant may exceed her/his rent.
Benefit is capped so a claimant can only be paid up to a weekly maximum of their
actual weekly rent plus £15.

How do I apply for LHA?

To claim Housing Benefit, Local Housing Allowance or to apply for a discretionary
housing payment, contact your local authority. For Dundee residents:
http://www.dundeecity.gov.uk/finance/chartervisiting/

Further Information:

This has been written as a general guide. For further information, particular to your
circumstances, please contact us. Other sources of information that may be of
interest:

For local housing allowance rate details in Dundee:
http://www.dundeecity.gov.uk/finance/lharates/