An Introduction to Local Housing Allowance

Local Housing Allowance is the new way of working out the maximum Housing Benefit you could get. The amount you will get will still depend on your income and savings. It is only the way we work out the maximum Housing Benefit you could get that is changing.

Everybody who claims Housing Benefit from 7 April 2008 will have their Housing Benefit worked out using Local Housing Allowance. If you are already receiving Housing Benefit, the rules will not change until you change address or temporarily stop claiming.

Local Housing Allowance does not affect you if:

  • you live in a home which is owned by us or a local authority landlord;
  • you are a tenant of a registered social landlord;
  • you live in supported housing;
  • your tenancy started before 15 January 1989;
  • you live in a caravan, houseboat or hostel; or
  • the Rent Officer has decided that a large part of the rent you pay for your tenancy is for meals cooked for you.

If you are in one of the above groups, you will continue to have your Housing Benefit worked out under the existing rules.

How does Local Housing Allowance work?

Local Housing Allowance has been introduced to make claiming benefit fairer and easier. The maximum amount of Housing Benefit you can receive will be set beforehand by the Rent Officer. It will not depend on the amount of rent you pay.

The maximum amount you could receive will be the same for every same-size household in the area you live in, no matter what differences there are in the actual rent you and the other households pay.

This means that you can find out the maximum benefit you could get before you decide to rent a property.

Your Local Housing Allowance will be based on:

  • the area you live in;
  • who lives with you;
  • how much money you have coming in; and
  • what savings you have.

You can find out more about the Local Housing Allowance by clicking on the questions below.

How will my Local Housing Allowance be paid?

How do I work out the Local Housing Allowance I can get?

What if my rent is not the same as my Local Housing Allowance rate?