Local Housing Allowance
What is Local Housing Allowance?
If you rent from a private landlord and make a new claim for Housing Benefit or move home your benefit entitlement will be calculated based on the rent charged or using the Local Housing Allowance rate for your household circumstances, whichever is the lower of these figures.
The Local Housing Allowance rates are set by The Valuation Agency (VOA) each month for different size properties. The rate you will be entitled to will be based on the number of people who live with you and their ages. Local Housing Allowance is the maximum amount you can receive and this will reduce depending on your income, savings and circumstances.
You will not be affected by these changes if:
- you rent your property from a Housing Association (including Luminus Homes)
- your rent has been registered as a "fair rent"
- your tenancy started from before 1989
- your tenancy includes the provision of care, support or supervision and this is provided by a local authority, social landlord, charity or voluntary organisation
- your accommodation is a caravan, mobile home or houseboat
- your rent includes a substantial amount for board (food) and attendance, such as a private hostel
You will be affected by Local Housing Allowance if you are:
- a private tenant making a new claim for Housing Benefit
- an existing tenant who changes address to a private tenancy
- a private tenant who has a break in entitlement with their existing claim
How are the Local Housing Allowance rates worked out?
Huntingdonshire has been divided into 4 areas called Broad Rental Market Areas (BRMA's) by the VOA. The VOA will look at all the rent levels for all privately rented properties in each BRMA area and from this information the Local Housing Allowance rates are worked out. The rates the VOA set will last for the financial year (1 April - 31 March). You cannot appeal against the Local Housing Allowance rates set by the VOA.
Each area may have different rates and your property will fall into one of these BRMA's. Please check which BRMA your property falls into to make sure you know the rate which applied to you. You can use the VOA link opposite to find out which BRMA you fall into by entering your postcode.
Details of the Local Housing Allowance rates for the 4 BRMA areas are listed opposite and are available at our local offices.
Which Local Housing Allowance applies to you?
The Local Housing Allowance rate we will use will be worked out on:
- where you live
- who lives with you
The calculation for Local Housing Allowance allows you one bedroom (up to a maximum of 4 bedrooms) for:
- every adult couple
- any other adult (person aged 16 or over)
- any two children aged under 10
- any two children of the same sex aged 10 to 15
or any other children
- you or your partner has an established need for overnight care that is provided by someone outside of your household, and you occupy a property with an additional bedroom that is used for this purpose
We do not take any other rooms into consideration when your Local Housing Allowance rate is worked out.
The Local Housing Allowance rate at the date of claim will normally apply for one year. If your household circumstances change then you must tell us straight away. See the details below about changes may affect your claim.
If you wish to find out which Local Housing Allowance rate applies to you please use the link to the Valuation Office Agency web site which includes a bedroom rate calculator.
What if you are a single person aged 16-34?
If you are a single person, aged 16-34 we will use the 1 room shared accommodation rate no matter what type/size of property you rent. This rate will apply whether you share a house or live in a self contained flat/house.
However, you will qualify for the one bedroom rate if you meet any of the following criteria:
- you receive the severe disability premium in your benefit assessment, or
- you are a Care leaver ( following Social Services care) and are aged under 22, or
- you are aged 25 to 34 and have spent 3 months in a hostel or hostels for the rehabilitation or resettlement of homeless people prior to moving into your self contained accommodation, or
- you are aged 25-34 and an ex-offender who is being managed under a Multi-Agency Public Protection Arrangement If you are a joint tenant(s).
If you are a joint tenant(s)?
Joint tenants are people who are not a couple but share a property and are each named on the tenancy agreement. A joint tenant who claims will get the Local Housing Allowance rate based solely on their own family details. It will not include the other joint tenant(s) and members of their family.
The room rate a joint tenant will get will be based on their age and the number of rooms they have exclusive use of (rooms they do not share with other joint tenants). If they do not have exclusive use of two or more rooms they will qualify for the shared accommodation rate. For benefit purposes the second or additional rooms should be a living area, not a bathroom or kitchen.
How much benefit will I get?
How much benefit you get is still based on your financial circumstances and proof of a valid tenancy agreement. In the benefit calculation we will use he lower of the actual rent charged or the Local Housing Allowance rate appropraite to your circumstances.
If there is a shortfall between the amount of Housing Benefit awarded and the rent you pay, you may make a claim for a Discretionary Housing Payment. However, the amount of funds available to the Council for Discretionary Housing Payments is limited, so not all claims are successful.
Payment of Housing Benefit
Payment of benefit under the Local Housing Allowance rules will normally be made to you (the tenant). It is your responsibility to pay the rent to your landlord. Only in exceptional circumstances will payment be made direct to your Landlord.
Benefit payments for Local Housing Allowance will be made every four weeks (in arrears) directly into a bank or building society account. Most people will find this the easiest way so you can set up a standing order to pay your landlord.
If you don't have a bank account you can open a basic bank account at most bank or building societies. If you have difficulty opening an account please contact us.
If someone else looks after your money for you or has power of attorney, payment of Housing Benefit can be made to them.
Safeguard rules
Some people may have difficulty managing their financial affairs and may struggle to use their benefit to pay their rent. However, payments can only be made direct to a Landlord in certain circumstances, some of which are shown below:
- if you are more than 8 weeks in arrears with your rent
- if we can establish you are unlikely to pay your rent
- if we can establish you cannot handle your own affairs
- if it will help you secure or retain a tenancy
Before we make payments to a Landlord on your behalf under the safeguard rules we will ask for more information. We may need to write to you or someone else acting on your behalf to check your circumstances. Details of our Safeguard & Vulnerability policy is shown opposite.
What happens if my circumstances change?
Normally, the Local Housing Allowance rate will apply for 12 months from the date you claim. However, it is important you tell us straight away when your circumstances change.
Moving Home - If you move home, then your benefit may be recalculated based on the new Local Housing Allowance room rate or the actual rent figure charged, whichever, is the lower figure for the new property.
Changes in the Household - If someone moves in or out of your home, this may affect the Local Housing Allowance room rate. You will need to tell us straight away about these changes so we can check your entitlement and change it if necessary.
If you have any questions about Local Housing Allowance please contact us.