Housing Benefit will be changing from April 2008. A new scheme called The Local Housing Allowance (LHA) will be introduced and has been designed to be a fairer and simpler way of working out how much help with your rent we can give you. It is intended to give you more choice and allow you to choose the quality and price of your accommodation as you will have a clearer idea of the amount of LHA you will be entitled to.
Here are some of the key characteristics of Local Housing Allowance.
Who will be affected?
· Private tenants who make a new claim after 7 April 2008.
· Existing claimants who have a change of address and move to a private tenancy.
· Existing claimants who have a break in their Housing Benefit claim after 7 April 2008.
Existing claimants will remain on the current Housing Benefit scheme until one of the above events take place. Claimants who rent from Housing Associations, have a tenancy that started prior to 1989 or reside in supported accommodation will not move onto LHA and should not notice any changes to their claim.
How is LHA worked out?
How much LHA you may get depends on:
· Who lives with you and how many bedrooms your family need.
· Which area your accommodation is in.
· How much money you have coming in.
· What savings/capital you have.
How will I know how much LHA I am entitled to?
Each month the rates of maximum LHA payable will be published at the FirstCall office in Bridge Street, Morpeth. They will also be displayed at some other council buildings such as libraries and also in JobCentre plus offices. If you contact FirstCall and inform us of your income and family details we will be able to provide you with an estimate of your actual LHA award.
What is different about LHA?
There are two major differences between LHA and the current Housing Benefit scheme which customers will notice. Firstly, LHA is a flat rate housing allowance. This means that if your actual rent is less than your LHA award you can keep the difference, up to a maximum of £15 per week. This money will not affect any other social security benefits you get.
Secondly, in nearly all cases LHA will be paid direct to you via automated transfer into your bank or building society account. You can then arrange a standing order/direct debit with your bank/building society to allow payments to be made to your landlord if you choose. If you are have problems obtaining or managing your bank account we will be able to provide help with this.
In some exceptional cases we may be able to pay direct to your landlord and we will provide further guidance on this in the near future.
How will LHA affect landlords?
The main change for landlords is that LHA will usually be paid to the tenant. The tenant will then be responsible for paying their rent to the landlord. It will no longer be possible to make direct payments to the landlord just for the tenant’s convenience.
What should I do now?
To find the current LHA rate, please click on the following link Published LHA Rate
If you currently receive your Housing Benefit payments by cheque you should make arrangements to change this to be paid straight into your bank account. If you currently do not have a bank account please contact us on 01670 – 535000 and we will be able to offer advice regarding this.
Contact Details
For further information or specific help with information on this page, please contact us:
First Call Castle Morpeth
28 Bridge Street
Morpeth
Northumberland
NE61 1NL
Telephone 01670 535 000
Email firstcall@castlemorpeth.gov.uk