Local Housing Allowance (LHA) changes from April 2011
The following Local Housing Allowance changes affect customers whose Housing Benefit is calculated from the LHA.
LHA is for people who:
- rent from a private landlord (eg not a Housing Association such as Rosebery), and
- have moved or made a new claim since April 2008.
Anniversary date
The LHA changes will affect new LHA claims received from April 2011 immediately and existing LHA customers nine months after the anniversary of their claim (except the 'Excess' change below which will apply from the anniversary date). The anniversary occurs each year after the date you made your current claim or the date you had a change in your family size that altered your LHA rate.
Excess LHA abolished
For customers whose rent was lower than the appropriate LHA rate, their Housing Benefit would be calculated upon a rate up to £15 per week in excess of their rent.
From April 2011, Housing Benefit will be based upon the lowest of the rent, the appropriate LHA rate, or the capped LHA rate - an nop excess will be payable.
Each LHA rate capped
Each month for every are the Valuation Office Agency set an LHA rate for different sized accommodation. Housing Benefit is then calculated using the rate for an appropriately sized property and unless there is a change in family size, that rate continues to be used until the anniversary of the claim. You can see what area you live in and how many bedrooms your require at www.lha-direct.voa.gov.uk/Secure/LHASearchIntro (external website).
From April 2011, each rate will be capped to a weekly maximum of:
1 bedroom = £250
2 bedroom = £290
3 bedroom = £340
4 bedroom = £400
though the LHA rate itself may be lower than these. Housing Benefit will then be calculated from the lowest of your rent, the actual LHA rate or the capped LHA rate.
LHA rate limited to four bedroom accommodation
Appropriately sized accommodation is decided with regard to the number and ages of the people in the household. You can find out more at www.lha-direct.voa.gov.uk/Secure/LHASearchIntro (external website).
From April 2011 the maximum LHA rate will be limited to that of four bedroom accommodation and the four bedroom rate will be capped at a maximum of £400 per week.
Therefore, Housing Benefit will be based upon the lowest of the rent, the actual four bedroom LHA rate or £400 per week - even if your household size requires more than four bedrooms.
Any household requiring more than four bedrooms would be limited to the four bedroom rate.
If your rent is higher than the LHA rate your benefit will be calculated from the LHA rate.
You can find out which are your live in by visiting www.lha-direct.voa.uk (external website)
Carer's room allowance
Housing Benefit is calculated with regard to the number of bedrooms a customer and their family require. Before April 2011 no allowance could be made for a non-resident carer.
However, with effect from April 2011, if you are disabled and have a carer who does not live with your but is required to stay overnight we may be able to increase your benefit in respect of the additional bedroom you need for them.
If you think this might apply to you please contact the Council's Benefits Section on 01784 446374 / 456 / 457 immediately.
Changes in circumstance
The amount of benefit you receive still depends on things such as your income and capital - and those of the people living with you.
Therefore your must ensure you advise us of any changes immediately. Any delay may cause overpayments and a loss of benefit.