Benefits
Local Housing Allowance - it came into force from 7 April 2008 but what is it all about and how will it affect people who claim Housing Benefit?  Local Housing Allowance is a Government reform designed to simplify the Housing Benefit rules and allow you more freedom financially, and when it comes to choosing where you want to live. So what is Local Housing Allowance? Local Housing Allowance is a flat rate allowance based on the size of your household and the area in which you live. It is not based on the rent that your landlord is charging for your property. There are no changes to entitlement rules - these are still based on your income and savings and proof of a valid tenancy. So who will it affect? It will only apply to you if you:
You will not be affected by Local Housing Allowance if you are:
How are Local Housing Allowance amounts set? The Local Housing Allowance rate that you would qualify for is dependent on the number of people in your household and the area in which you live. This rate takes into account the number of bedrooms needed by your household. Hinckley and Bosworth has been divided into areas (Broad rental Market Areas) by an independent Rent Officer. Local Housing Allowance will pay the same amount wherever you live in your area, not the actual rent paid for the property. This means that tenants with the same circumstances will be entitled to the same rate of Local Housing Allowance. It is intended that tenants will then have the choice to to trade between quality and price in their accomodation. e.g. if the actual rent for a property is less than the Local Housing Allowance for the type of property the tenant needs, the tenant will be able to keep the extra money upto a maximum of £15 per week. But if the actual rent charged is greater than the Local Housing Allowance, the tenant will have to pay the difference to the landlord. You can download a map (at the bottom of this page) which will show you the three different Broad Rental Market Areas that Hinckley and Bosworth Borough Council covers. You can use your postcode to work out which Broad Rental Market area you live in when you click on the following link to the Rent Service website. How much Local Housing Allowance will I get? Local Housing Allowance is the maximum amount of Housing benefit you could receive towards your rent, the amount that you will actually receive will still depend upon the money that you have coming in each week, what savings you have and who else lives with you. The amounts of Local Housing Allowance will be notified to us by the Rent Service each month. You can view this by clicking the link below: Or you can contact Hinckley and Bosworth Borough Council on 01455 238141 for further information. You can also check your Local Housing Allowance rate on the Rent Service* website. How will I be paid? Local Housing Allowance will normally be paid to you, either into your bank or building society account, if you have one, or by cheque until you open an account. If you do not already have a bank or building society account, you may want to set one up. You can pick up a leaflet at the Council Offices or download it from the leaflets and forms page that gives information regarding all basic bank accounts available in Hinckley. Alternatively you can get further advice by logging onto the FSA website www.moneymadeclear.fsa.gov.uk* or you can contact any bank or building society. Under the Local Housing Allowance scheme there is no longer an option for Housing Benefit to be paid to a landlord unless there are exceptional circumstances. The Government believes that tenants receiving Housing Benefit payments will take greater responsibility for managing their financial affairs in the same way other tenants do. It is up to you to pay the rent to your landlord. If you don't pay your rent, your landlord may take action against you. What if I am unable to cope with paying my rent? We know that some people may struggle with the responsibility of financial budgeting and there may be exceptional circumstances where we can pay your landlord directly. We have the discretion to make payments to your landlord where we consider you are likely to have difficulty managing your affairs. Each authority has a safeguard policy to take into account groups who are in these circumstances. Hinckley and Bosworth Borough Council in partnership with other Leicestershire councils have decided a safeguard policy. You can download a pdf version of Hinckley and Bosworths safeguard policy by clicking the document at the bottom of the page. To make a decision whether to pay Housing Benefit to your landlord we will need further information as to why you cannot manage your own financial affairs. We will ask you to complete a vulnerability form to establish this information and we will also need you to provide proof when you return the form to this office. If you would like to download this form, please see the files at the bottom of this page. Any further questions? At Hinckley and Bosworth we appreciate that this new change may cause concern as to how and whether this will affect you. If you have any questions or want to know more, please contact us in person, in writing or on the phone (see contact details below) and we will be happy to advise you: Telephone: 01455 238141 Address: You can also find out more information about Local Housing Allowance at www.dwp.gov.uk/housingbenefit/lha* * Hinckley and Bosworth Borough Council is not responsible for the content and services on external websites.
Files: Safeguard Policy (PDF, 100 Kb) |