Local Housing Allowance (LHA) started on 7 April 2008 and is the rent figure used to work out Housing Benefit for private tenants.

Your LHA rate is based on the number of bedrooms you are allowed and not on how much your rent is. The number of bedrooms allowed depends on who lives with you.

LHA affects tenants who make a new claim for benefit, have a break in their claim or change address. The Rent Service will no longer value individual properties. 

Find out the current Local Housing Allowance rates

Use our Benefits Calculator to see if you are entitled.

LHA does not affect:

• claims that have been in payment before 7 April 2008 and have not changed address
• people who live in council or housing association accommodation
• tenancies that started before 1989
• certain protected cases
• caravans and hostels
• tenancies with board provided, such as B&Bs.

How does it work?

The Local Housing Allowance rate is calculated by comparing the number of people in your household with the number of bedrooms you need. The Rent Service will set monthly LHA rates for different size properties in Exeter. This means that it doesn't matter where you live in Exeter, everyone who has the same Household make up as you will have the same LHA rate to calculate their Housing Benefit

Under the government rules, one bedroom is allowed for:

• each adult couple
• any other person 16 or over
• any two children of the same sex between 10 and 15
• any two children, regardless of sex, under 10
• any other child.

There are some exceptions. These are:

Single claimants under 25 years – If you are single and under 25 ("young individual"), you will only be entitled to the shared accommodation rate of LHA, even if you are renting a self-contained one bedroom property.

Shared accommodation – If you are a single person or a couple living in shared accommodation, you will be entitled to the shared accommodation rate of LHA. This will be at a lower level than the one bedroom, self-contained accommodation rate.

How much Housing Benefit will I get?

LHA rates are set each month by The Rent Service. Your LHA rate will be based on the number of bedrooms your household needs. It does not take into account the number of bedrooms in your property or the rent that you are charged. 

If the amount of rent you pay is above the LHA level then you will have a shortfall. However if your rent is below the LHA level then you may be able to keep the difference up to a maximum of £15 per week!

The amount of Housing Benefit you get will be based on the LHA rate at the time of your claim (This may be a different month from when you actually complete a claim form). LHA for a change of address will be based on the rate at the time you move into the new address. The rate will remain in place for a year. After a year your claim will be automatically reviewed and changed to the new rate.

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

Find out the current Local Housing Allowance rates

Use our Benefits Calculator to see if you are entitled.

Can I have my benefit paid direct to my landlord?

You can no longer ask for your benefit payments to be made to your landlord. We may do so if you are likely to have problems paying your rent, you are 8 or more weeks in arrears or if you have 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.

What do I need to do?

If you are already claiming Housing Benefit do nothing.

If you are about to claim and you don't have a bank account, you need to open one. You can download a leaflet from this site. 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.

Download  Basic Bank Accounts Guide [351kb]

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

What are the key features of the LHA scheme?

• LHA claims are not referred to the rent officer to set a maximum rent.
• LHA ensures your entitlement will be the same as people with similar circumstances living in Exeter.
• LHA is based on the number of bedrooms you need and not on the amount of rent you pay.
• you can find out how much benefit you could get before renting a property
• you will find out about your benefit more quickly than before
• LHA will be paid directly to you, but inbuilt safeguards will allow payments to be made directly to your landlord if you are likely to have difficulty managing your affairs or you are 8 or more weeks in arrears

Where can I get more information about Local Housing Allowance?

For more information you can also visit the websites of the Department for Works and Pensions or the Valuation Office Agency