Local housing allowance

Introduction

What is it?

It is a scheme that will affect tenants renting from private landlords. Its intention is to be a fairer and simpler way of calculating housing benefit. Local Housing Allowance (LHA) came into effect on 7 April 2008.

Who will be affected?

At this moment in time you will not be affected by LHA if:

How is LHA worked out?

It depends on:

LHA is not based on how much rent you pay. LHA rates are set by an independent rent officer, based on local rents. These rates are the maximum amount of LHA you may get. You may get less than the maximum rate depending on your circumstances.

LHA and the number of rooms you need

LHA rates will be different according to the number of bedrooms you need.
One bedroom is allowed for:

LHA and where you live

Every local council is divided into areas (Broad Rental Market Areas) by an independent rent officer.  Calderdale will count as one area. This means that tenants with the same circumstances will be entitled to the same rate of LHA throughout the borough.

For more on Broad Market Rental Areas visit The Valuation Office Agency|External link.

How is LHA paid?

In most cases it will be paid direct to the tenant, who has responsibility to pay the rent to the landlord. We realise that some people may struggle with this responsibility and help will be available.

The safest and simplest way of paying LHA is into a bank or building society account.  If you do not have a bank or building society account, find information about opening one in  Money Made Clear|External link  by the Financial Services Authority.  Alternatively, you can contact our Customer Service Team who will assist you in opening one.

Need more information?

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Last Updated: 21/03/2014