Housing Benefit

Quick Guide to Local Housing Allowance

Local Housing Allowance sets the maximum levels of Housing Benefit (for those with private landlords).

If your rent is more than the limit, they will not pay it all

If your rent is less than the limit, they may pay up to the full amount and an additional £15

The maximum level is based on number of bedrooms needed. They calculate this as 1 bedroom for every:

• Adult couple

• Adult aged 16+

• Any two children of the same sex up to 16

• Any two children regardless of sex under 10

• Any other child

If you are under 25 a lower, shared/bedsit rate applies (unless you are severely disabled, have a non-dependent living with you, or are under 22 and recently came out of care)

Once over 25, you qualify for the higher 1-bedroom property rate

Edinburgh Council’s LHA rates, April 2008:

Can you claim?

If you are on a low income and/or welfare benefits, you are eligible for Housing Benefit.

However it is calculated in a complicated way

You may not receive the full amount depending on:

• Your income (including pension, grants/bursaries, tax credits and benefits)

• Your savings

• If you have non-dependents living with you – this would be someone who:

  • Is not your wife, husband, or partner

  • is someone you do not claim child benefit for

  • is over 18

• The amount deducted will depend on that person’s income (if they are under 25 and receiving Jobseeker’s Allowance, Pension Credit or Income Support, or are a full-time student, there is no reduction)

You will not be eligible if:

• You are responsible for the landlord’s child

• The landlord is your ex-partner

• The landlord is related to you and lives in the same building

Housing Benefit will not cover extra services included in the rent such as:

• Heating

• Electricity

• Cleaning

• Meals

• Laundry

• Personal Care

• (But they will pay for communal services such as gardening and stair cleaning in tenements etc)

So if these things are included in your rent, make sure they do not show up on the lease.

Other Info

Carer’s Premium: If you are registered as a Carer you receive a premium on top of the Local Housing Allowance. Do not be put off registering as a carer just because your income/savings are enough to exclude you from the means-tested Carer’s Allowance benefit – you will still receive the premium regardless of income, because of the ‘underlying entitlement’ that is automatic once you register as a carer.

Disability Premium: this is added automatically if you are on Disability Living Allowance, Incapacity Benefit, or the new Employmant Support Allowance

Reassessment: Your LHA eligibility is reassessed every 12 months. There should be an immediate reassessment if there is a change of dwelling, or change in no. of rooms required. However the Council may be slow to reassess your entitlement so let them know if you are suddenly entitled to a higher level of LHA.

Local Housing Allowance not applied for first 13 weeks of your claim (if you haven’t claimed for 52 weeks prior to this), meaning if you are eligible for having all your rent paid but LHA limits mean not all is paid, this limit is disregarded for first 13 weeks.

Payments: LHA Housing Benefit is paid to the tenant, not landlord. If you want it to be paid direct to the landlord, this can be allowed where:

• The Council considers the tenant likely to have difficulty managing their affairs (ie mental health problems, drug/alcohol, debt, gambling); or

• The tenant has fallen 8 weeks into rent arrears; or

• The tenant has a history of falling into arrears.

Appeals: Their refusal to pay direct to the landlord can be appealed, as can decisions on the number of bedrooms needed, existence of a non-dependent, the tenants’ income, etc. However the LHA rates cannot be appealed. Appeals must be lodged within one month of the decision.

Delays: Legally Housing Benefit must be paid within 14 days of receipt of the claim if you are a private sector tenant. However in reality there are often delays of weeks or months. You can demand an interim payment (a ‘payment on account’) if there is a delay. These payments are not discretionary – if they have the necessary documents from you and 14 days have passed, they must by law give you an interim payment immediately.
The only way they can refuse is if it is clear you will not be entitled to Housing Benefit, or if they asked for more information from you and you failed to supply it.