Local Housing AllowanceFrom April 7th 2008, there will be some changes to the way Housing Benefit will be administered for private tenants in Merthyr Tydfil. From this date, a new scheme called Local Housing Allowance (LHA) will come into effect across the UK, and it will apply to all new claims received from private tenants.
LHA is designed to help tenants have more choice in deciding where to live, and take more financial responsibility in deciding how much of their money they choose to pay in rent. Tenants with the same circumstances will be paid the same amount of LHA, and these payments will be sent directly to tenants.
Please remember, it is the responsibility of the tenant to pay their rent to their Landlord.
What is Local Housing Allowance?
LHA is a new way of working out Housing Benefit for people who receive a low income, and who pay rent to private Landlords. LHA is based on the number of rooms that people require, not how much the rent is. The number of rooms allowed depends on the number of people living in the property.
One bedroom will be allowed for each of the following:
- Every adult couple
- Any other adult or child aged over 16
- Any two children of the same gender
- Any two children regardless of gender aged under 10
- Any other child
Housing Benefit entitlement will still be “means tested”, when the claimant’s income is taken into account when calculating entitlement. The application process remains unchanged, with the tenant required to provide a fully completed Housing Benefit application, along with additional supporting documentary evidence of their individual circumstances, including evidence of rental liability.
If you wish to know the number of bedrooms you are entitled to under the Local Housing Allowance scheme, please click on the link shown below:
http://www.merthyr.gov.uk/bencalc/lha_roomer.htm
What are the aims of LHA?
Fairness
With LHA, tenants will get the same amount of benefit as people with the same circumstances, regardless of the size of property or area they live in.
Choice
Tenants can decide how much of their LHA they want to spend on renting a property. For example, you could choose to live in a larger property and use all your LHA payments, or live in a smaller property and keep some of the LHA, up to a maximum of £15.
Transparency and reduced barriers to work
There will be one set of LHA figures for Merthyr Tydfil, and tenants will know how much LHA they will get before they decide to rent a property. These figures will also make it easier for customers to move into work, as they will know more quickly how much of their rent will be covered by LHA, and how much they will have to pay out of their wages.
LHA Rent Rates April 2008
LHA Rent Rates May 2008
LHA Rent Rates June 2008
LHA Rent Rates July 2008
LHA Rent Rates August 2008
LHA Rent Rates September 2008
LHA Rent Rates October 2008
LHA Rent Rates November 2008
Personal responsibility and Financial Inclusion
In most cases you will have your LHA paid directly into your Bank account. It will then be your responsibility to pay the rent to your Landlord. If you do not have a Bank account, you will need to take steps to open one. You can then set up a standing order or direct debit to pay your rent to your Landlord. It is important you open an account without delay, as all payments by cheque will end from April 1st 2008.
The Local Authority has produced a leaflet on how to open a Basic Bank Account, which can be accessed by clicking on the link below, but you will have to contact the Bank or Building Society yourself to open an account. If you are worried about managing your money, you can ask organisations such as Citizens Advice, for help to budget your bills etc.
A Guide to Basic Bank Accounts
Who is not affected by LHA?
- Local Authority landlords who let to “Council tenants”
- Tenancies with Registered Social Landlords, for example Merthyr Tydfil Housing Association.
- Protected cases, such as Supported Housing provided by Local Authorities, Charities or Voluntary Organisations
- Tenancies which are excluded from current restrictions
- Tenancies in caravans, houseboats and hostels
- Tenancies where the Rent Officer decides that a substantial part of the rent is for board and attendance, such as hotel accommodation
Housing Benefit Information for Tenants
Tenants LHA Information Leaflet
Tenants Newsletter Winter 2007
How does LHA affect Landlords?
LHA affects any Landlord who enters into a de-regulated private tenancy agreement with a tenant. A de-regulated agreement is one set up since 1989. The only other change for most landlords is that LHA will be paid directly to the tenant, and the tenant will then be responsible for paying the rent to their Landlord.
Landlords Information Leaflet
Information for Landlords and Agents
However, the Local Authority recognises that some tenants may struggle with the responsibility of paying their rent, and in such cases, safeguards will be put in place.
Safeguards
Rather than introduce a precise list of circumstances when payment could be made to the Landlord, the Local Authority has a policy for safeguarding LHA payments. This is called a “Vulnerability Policy”, and when an application is made by the tenant or landlord to make payments to the landlord, the Local Authority will follow the guidelines included in the policy and make an appropriate decision on each case.
The Local Authority can decide to make a payment directly to the Landlord in a number of circumstances, including:
- If a tenant has learning difficulties or mobility problems that make dealing with day to day business difficult
- If a tenant has serious difficulties in communicating or speaking English
- If a tenant is dealing with gambling, drug or alcohol addiction
- If a tenant has severe debt problems
- If a tenant is unable to open a Bank account
- If a tenant is more than 8 weeks in arrears with their Rent
To implement any of these safeguards and to assess a potentially “vulnerable” tenant, the Council must be presented with documentary evidence. We have an application form for tenants and landlords to request payments to be sent to the Landlord, and guidance on acceptable evidence is included on the form.
The Local Authority can accept written evidence from:
- The tenant
- Family and friends of the tenant
- The Landlord
- Welfare and Support Groups
- Social Services
- G.P. (Doctor)
- Probation Service
- Department for Work and Pensions
Once the vulnerability request and relevant supporting evidence has been considered by the Benefit Section, a decision will be made within 5 working days. The tenant and Landlord will receive written confirmation of the decision, and both will have the right to ask for a Review of the decision, and/or and Appeal the decision.
If it has been decided to change payments from the tenant to the Landlord, this decision will be reviewed on a regular basis to ensure that the circumstances surrounding the decision still apply.
Request for LHA payment to be made to Landlord
Request for LHA payment to be made to Landlord (tenant form)
The Council considers it extremely important that the most vulnerable members of society are protected at all times. The Government recognises that the changes included in the Welfare Reform Act may affect certain individuals, as they can no longer request their LHA be paid direct to their landlord, and who will now have responsibility for ensuring they budget for and pay their rent on a regular basis. Some tenants may not be able to deal with this responsibility, and Local Authorities have been encouraged to develop a “Vulnerability Policy” to protect such individuals. The policy has been developed in consultation with agencies such as Citizens Advice and Shelter Cymru, and can be accessed and downloaded by clicking on the link below:
LHA Vulnerability Policy
Changes in Circumstances
As with all Housing Benefit claims, you will need to tell us if there are any changes in your circumstances or if you move address. You may need to complete a change in circumstance form or a new claim form, depending on the change.
For any help or information on LHA, please contact us at the following address:
Local Housing Allowance Team
Benefits Section
Customer Community Services
Civic Centre
Castle Street
Merthyr Tydfil
CF47 8AN
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