Local Housing Allowance (LHA) is paid to people who are private sector tenants and have made a new claim on, or after, 7 April 2008.
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.