Local Housing Allowance

From 2018 if you are:

  • Under 35
  • Do not have any children under the age of 16 living with you
  • Receiving a benefit to help you pay your rent

The money you receive may not cover the cost of the rent for your property.

If you sign a new tenancy from April 2016, your housing benefit could be reduced.                                   
     

How could this affect me?

If you sign a new or renewed tenancy from 1 April 2016 onwards, the amount of housing benefit that you may receive from 1 April 2018 could be restricted.

This is because if you accept a tenancy with a local authority, a registered housing association or other registered social landlord the amount of housing benefit you will receive will be capped to the relevant Local Housing Allowance rate for your household size.

The Local Housing Allowance rates for your area can be found at http://lha-direct.voa.gov.uk/Search.aspx

This rate is based on the number of bedrooms you are also allowed, to find out more about this visit http://lha-direct.voa.gov.uk/bedroomcalculator.aspx

If you will be under 35 years old on the 1 April 2018 and do not have any dependent children living with you, the amount of Housing Benefit you receive will be capped to a shared accommodation rate (SAR) even if you do not share your home with anyone else.

Below are some examples of rent differences from our own homes;

Total weekly rent

Property type

(number of bedrooms)

LHA rate

Weekly difference

LHA SAR

Weekly difference

£84.48

1

£81.58

£2.90

£58.90

£25.58

£79.97

1

£75.78

£4.19

£59.04

£4.19


What do I need to think about before I accept a new tenancy?

If you are thinking about ending your tenancy with us it is important that you consider very carefully whether you can afford to pay any rent from your own income, if the rent is higher than the benefit that you will receive.

Will I also have to pay bedroom tax as well?

No, however your benefit will be reduced by the largest amount – so your benefit will most likely be less than the cost of your rent