Local Housing Allowance

In April 2008 the Local Housing Allowance (LHA) scheme was rolled out nationally and has changed the way we pay housing benefit for new claims received from private sector tenants.

The main aims of the Local Housing Allowance (LHA) scheme

• Fairness: LHA is designed so that two households with similar circumstances living in the same area will be paid the same amount.
• Transparency: Tenants and landlords can find out the maximum amount of LHA available before entering into a tenancy agreement.
• Personal responsibility: In most cases LHA will be paid directly to tenants giving them the responsibility to pay their own rent and manage their own financial affairs. 
• Financial inclusion: The government wants tenants to have their LHA paid into a bank account and for them to pay their rent by standing order direct to their landlord.  This is a safe and secure method of payment.