How is Local Housing Allowance worked out?

The amount of Local Housing Allowance you can receive depends on:

• who lives with you
• which area you live in
• how much money you have coming in
• what savings you have

LHA is based on the number of bedrooms you need:

One bedroom is allowed for:

• every adult couple
• any other adult aged 16 or over
• any two children regardless of sex aged under age 10
• any two children of the same sex aged under 16
• any other child

For example:

• A man and wife plus two children age 11 and 17 are entitled to the three bedroom LHA rate.
• A single parent with a daughter age 5 is entitled to the two bedroom LHA rate.

Single people aged under 25 are entitled to the standard rate for a bedroom in shared accommodation. This shared rate will be based on properties where a tenant has the exclusive use of only one bedroom and where the tenancy provides for him to share the use of one or more of:

• a kitchen
• a bathroom
• a toilet, or
• a room suitable for living in

Single people aged over 25, care leavers under 22 and couples with no dependant children will be entitled to the rate for a one-bedroom property, e.g. a one-bedroom flat or studio or other kind of self-contained accommodation, provided they actually rent a property of at least this size

However, if a tenant in this category chooses to live in a property where they do not have either exclusive use of two or more rooms, or exclusive use of one room, a bathroom and toilet and a kitchen or facilities for cooking, they will be entitled to only the shared LHA rate.

• Bedroom Entitlement Calculator

LHA is also based on the area in which you live.

Torbay will have only one Broad Rental Market Area (BRMA) which will also encompass parts of the South Hams and Teignbridge so wherever a customer lives in Torbay the same LHA rates will apply and will not relate to the rent charged for the property.

What is a Broad Rental Market Area?

The BRMA is the geographical area used for the Local Housing Allowance determination.

A BRMA comprises two or more distinct areas of residential accommodation, within which a person could reasonably be expected to live having regard to facilities and services for the purposes of health, education, recreation, personal banking and shopping.

When deciding a BRMA the rent officer takes account of the distance of travel, by public and private transport, to and from facilities and services of the same type and similar standard.

To ensure that the LHA reflects the distribution of rents in a BRMA it is calculated by reference to the median rent. The median rent is the rent that is halfway up the range of rents properties of the same size in a BRMA.

See the Rent Service website for more details.

How is the Local Housing Allowance calculated?

There are no changes to the Housing Benefit entitlement rules which is still based on a person’s financial circumstances, proof of a liability to pay rent and occupation of the dwelling.

This means that tenants with the same circumstances and living in the same BRMA will be entitled to the same rate of LHA. It is intended that tenants will then have the choice to trade between quality and price in their accommodation.

For example, if your rent is less than the LHA for the type of property you need, you will be able to keep the extra money up to a maximum of £15 per week. However, if the actual rent charged is greater than the LHA rate, you will have to pay the difference to the landlord from your own funds.

Find out more about Broad Market Rental Areas.

How much LHA will I get?

There are no changes to the Housing Benefit entitlement rules which is still based on a person’s financial circumstances, proof of a liability to pay rent and occupation of the dwelling.

LHA is the maximum benefit you can receive towards your rent. The amount you will receive still depends on the money you have coming in each week, what savings you have and who else lives with you.

The LHA rates will be set each month by the rent service and will give allowances for households who need up to six bedrooms. These rates will then be published each month by the council so you will be able to see the appropriate LHA rate for your household.  If a household is large enough that it requires a property of more than six bedrooms then the Council will be able to obtain these rates from the Rent Service. Once the LHA rate has been determined it will apply for 52 weeks from the date of claim and will then be reviewed. The LHA rate will be linked to the month in which the claim is made or treated as being made. If a relevant change of circumstances happens before this –  for example someone leaves or moves into the accommodation - then a new LHA rate will be needed. There will be no right of appeal against the LHA rate or against the BRMA set by the rent service.

Related Documents

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