Re: Local Housing Allowance

In message <q8m5t35k2oktscnjc0mhu5d5f7ljhrgh6j@xxxxxxx>, Alasdair <mail@xxxxxxxxxxxxxxx> writes
I understand that Local Housing Allowance (LHA) will replace Housing
Benefit from April 2008. I am wondering what are the principal
differences between the old system and the new.

I understand that one main difference is that LHA cannot be paid
directly by the local authority to the landlord but has to be paid to
the tenant who may then decide to do a runner and leave the landlord
with no rent.

Also, the amount paid by the local authority is fixes and if the
tenant manages to negotiate a cheap rent, he can keep the difference
as spending money.


The biggest changes are that the maximum benefit that a claimant can claim will be a fixed rate depending on their household size. If they choose to live somewhere more expensive, they will need to pay the difference, if they choose to live somewhere cheaper then they can keep the difference.

Some made huge gains during the pilots of this system, so in the roll-out this year the maximum someone can gain over their actual rent will be £15 pw.

The second big change is that payments must go to the tenant. They can receive these by BACS into a bank account or by crossed cheque. Payments cannot be made into a post offic4 card account so every claimant will need a bank account or will need to find a way to cash their cheque (cheque cashing shops are in for a treat)

There are safeguard in place that will allow, in some cases, for the landlord to be paid directly. These are cases in which there is a high risk that paying the tenant would lead to non-payment of rent.

LHA also applies only to benefit claimants in private rental property, not to social landlords.

--
Mike_B
.

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