Advice and benefits

Local Housing Allowance (LHA) is a new and simpler scheme for working out housing benefit. It comes into effect on 7 April 2008.

Who will LHA affect?

LHA will affect:

• people in privately rented accommodation who make a new claim for housing benefit on or after 7 April 2008
• existing private tenants who move or have a break in their housing benefit entitlement on or after 7 April 2008.

LHA will not affect:

• people who rent from a housing association
• people who rent from the council
• people who have a registered rent
• people living in privately rented accommodation who were in receipt of housing benefit before 7 April 2008 and who, since then, have not had a gap in their entitlement or moved home.

What are the key features of the new scheme?

• LHA claims are not referred to the rent officer to set a maximum rent
• LHA ensures that entitlement will be the same for people with similar circumstances living in the same area
• LHA is based on the number of bedrooms a person needs, not on the amount of rent he/she pays
• people can find out how much benefit they could get before renting a property
• people will find out about their benefit more quickly than before
• most LHA will be paid directly to the tenant, but inbuilt safeguards allow payment to be made directly to landlords if tenants are likely to have difficulty managing their affairs or are likely to fail to pay their rent.

How does it work?

Local Housing Allowance rate is calculated by comparing the number of people in the household, the number of bedrooms you need and the area in which the property is located.

The number of bedrooms you need is based on a set criteria. (See the Local housing allowance link at left and click on 'Local housing allowance - establishing the maximum rent'.) Single people under the age of 25 will only be entitled to the shared accommodation rate of LHA.

For LHA purposes Croydon has been divided into two areas. There will be more information available shortly on the areas and which postcodes are allocated to each area.

How can I find out the LHA rates?

The LHA rates change at the beginning of every month. These will first be available from 7 April 2008:

• on the council's website
• by ringing the contact centre on 020 8726 7000 to hear an automated message
• at our public enquiry counter in Fell Road, Croydon.

The amount of LHA you get will be based on the LHA rate at the time your claim. This will remain in place for a year. After a year your claim will be automatically reviewed and changed to the new rate.

If a you have a change in your household during the year you must inform us immediately as this may affect the amount of LHA you are is entitled to.

What do I need to do?

If you are already claiming housing benefit do nothing.

If you don't have a bank account, you need to open one. Ask us for a leaflet on how to do this. You will then be able to set up a direct debit or standing order to pay your rent to your landlord. You can open a basic bank account at any high street bank.

For further money advice contact the Citizens Advice Bureau or the Financial Services Authority.

Can I have my benefit paid direct to my landlord?

While tenants can no longer request their benefit payments be made to directly to their landlord, we can consider doing so in situations where you are likely to have problems paying your rent to the landlord or if you have consistently failed to pay your rent in the past.

What will happen if I use my benefit for something else?

Your benefit is to help you pay your rent. If you use if for any other purpose your landlord may take you to court or take action to evict you.

Where can I get more information?

For more information about the changes and how they might affect you, please see the links at both sides of this page or contact us at the details below.

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