Why is Local Housing Allowance being introduced?
The Government wants to simplify the administration of Housing Benefit. The six main principles behind the change are • Fairness – the same amount of Housing Benefit will be paid to customers with similar circumstances living in the same area • Transparency – LHA makes it easier for customers to find out how much rent will be used in their Housing Benefit calculation • Choice – customers will have more choice about the quality and cost of the accommodation that they live in • Personal responsibility – by paying the majority of customers direct, LHA will encourage them to take responsibility for budgeting and paying the rent themselves • Financial inclusion – LHA encourages customers to receive their Housing Benefit by BACS transfer and then to set up a Standing Order to pay their landlord • Improving administration and reducing barriers to work – LHA provides greater certainty about the help that’s available and will speed up the administration of Housing Benefit claims.
