Local Housing Allowance (LHA) rates are frozen. The figures quoted below for 2011 are accurate until April 2013.
If you rent in the private sector and your tenancy began after April 7 2008, the maximum amount of Housing Benefit you can get is decided under a scheme known as Local Housing Allowance.
LHA depends on the area where you live and the number of people who live in your home.
From April 2011, the maximum LHA weekly amount is:
- £250 for a one-bedroom property
- £290 for two bedrooms
- £340 for three bedrooms
- £400 for four bedrooms
The maximum rate of LHA that you can get is for a four-bedroom property.
The maximum benefit you can get is decided by allocating one bedroom in a property for:
- every adult couple
- any other adult aged 16 or over
- any two children aged under 10 regardless of sex
- any two children of the same sex
- any other child
The maximum benefit payable depends on the area in which you live. LHA is worked out by looking at the highest and lowest reasonable rents for an area, provided that the accommodation is in a reasonable state of repair. From April 2011, LHA is worked out using the lowest third of reasonable rents in the area, rather than the middle of the range of average rents.
The rates listed above are the maximum possible rates. The maximum rates in your area may be lower than those listed.
Allowances are calculated monthly and are made public so that you know in advance the amount of Housing Benefit you'll be paid. You can find the relevant figures on your local authority’s website and on the LHA Direct website.
From January 2012 the age limit for the ‘shared rate’ for single people has been extended to include single people under the age of 35. You'll be entitled to a standard rate for a single room in shared accommodation. The shared rate will be based on properties where tenants have a room of their own and shared facilities (kitchen, bathroom, toilet and living room).
How long does LHA last?
The relevant allowance for you is the one that applies on the day that you apply for benefit. This maximum rent will then apply for another 12 months unless there's a change of circumstances, such as a change in the number of occupiers or an increase in the rent. At the end of the year, the decision is looked at again and you don't have to make a new claim for benefit.
If you claimed Housing Benefit for a private rented property after April 7 2008 but before April 1 2011, the LHA rate on which your claim was assessed may be higher than the newer rates above. For example, the maximum property size allowed was five bedrooms.
New claims made after April 1 2011 will automatically be assessed at the newer rates. If you claimed before that date, you will keep your existing rate until nine months after the annual review date of your claim, as long as your circumstances haven’t changed before then.
Paying LHA
Payments will usually be made directly into your bank or building society account.
However, if you're a "vulnerable" person and may be unable to manage your money, you're unlikely to pay or you have more than eight weeks’ rent arrears, payment can be made directly to your landlord. You may need independent help and advice if you're having problems.
If LHA doesn't yet apply to you, there may be other restrictions on your maximum rent for Housing Benefit. If you change address and move into accommodation rented from a private landlord, you'll be moved on to LHA at this point.
