The scheme changes the way benefit is worked out and how it is paid.
The LHA is based on the rent levels for the area as decided by the Rent Officer and how many people there are living in the household, not the actual rent charged for the property. This means that tenants with similar circumstances will be entitled to similar rates of LHA. It is intended to give tenants choice between the quality and the price of their accommodation.
For information about the rent officer's role visit The Rent Service website (external link)
For example, if the actual rent is less than the LHA for the type of property the tenant needs, the tenant will be able to keep the extra money. However if the actual rent charged is greater than the LHA, the tenant will have to pay the difference to the landlord.
In most cases payment of the LHA will be made direct to the tenant and it will be the tenants responsibility to pay the rent to the landlord. We recognise that some people may struggle with this responsibility and help will be available if required.
LHA will only apply to new claims and claims following a change of address from 7th April 2008.
Exisiting claims on 6th April won't be affected until the tenant changes address or has a break in their claim.
Housing Benefit is one of the Government's key areas for reforming the welfare state. LHA will:
- offer greater fairness and transparency
- increase choice for tenants
- give tenants greater personal responsibility
- help remove barriers to starting work
- be simpler to understand
More information is available on the Department for Work and Pension's website (External link).
