London Borough of Croydon

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What is Local Housing Allowance?

Local Housing Allowance (LHA) is a new way of working out new claims for housing benefit for tenants renting accommodation from a private landlord. It went into effect in April 2008. 

LHA is for people on a low income and is based on the number of bedrooms they are allowed - not on how much their rent is. The number of bedrooms allowed depends on who lives with the tenant. The Rent Service will no longer value individual properties. 

LHA affects tenants who make a new claim, have a break in a claim or change address on or after 7 April 2008.

LHA does not affect:

  • claims that are in payment before 7 April 2008
  • people who live in council or housing association accommodation
  • tenancies that started before 1989
  • certain protected cases
  • caravans and hostels
  • tenancies where there is a substantial amount of board provided, such as B&Bs.

Why is Local Housing Allowance being introduced?

LHA is being introduced to increase tenant responsibility, place choice firmly in the hands of tenants and help them develop the skills necessary to make the transition into work. The objectives of introducing LHA are:

Fairness - to pay similar amounts to tenants with similar circumstances.

Choice - to allow tenants to choose between price and quality of accommodation.

Transparency - to make it easier for tenants (before they commit to a property) and landlords to find out how much rent could be covered by housing benefit.

Personal responsibility - to make tenants take responsibility for budgeting for, and paying, their own rent.

Financial inclusion - to encourage tenants to have their housing payments paid into a bank account and to set up a standing order to pay the rent.

Improved administration and reduced barriers to work - to speed up the administration of housing payments, giving tenants more confidence when starting a job that any in-work benefit will be paid quickly. 

Where can I get more information about Local Housing Allowance?

For more information you can also visit the websites of the Department for Work and Pensions (DWP) or The Rent Service (TRS).  See 'associated links'.

Where can I get more information about Local Housing Allowance rates in my area?

Click on the LHA Rates page at the top of this page. The rates are updated monthly.

Contact Details

Contact name
Council Tax & Housing Benefit
Telephone
020 8726 7000
Fax
020 8667 8440
Email
Croyhben@croydon.gov.uk
Address
Municipal Offices, Fell Road, Croydon, CR9 1BQ

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