Local housing allowance frequently asked questions

• I’m already getting Housing Benefit, will I now come under the Local Housing Allowance scheme instead?
• How can I tell what the Local Housing Allowance rate will be for a property I am interested in renting?
• Can I find out in advance of renting a property how much I will receive?
• Which month’s Local Housing Allowance rate will be used for my claim - the date of claim or when the claim is actually assessed?
• I’ve worked out that my room allowance is 2 bedrooms as my partner and I have one child, but I want to rent a 3 bedroom house as my child with my ex-partner comes to stay at weekends. Will you pay me the 3 room Local Housing Allowance rate?
• If my household size changes temporarily, eg because a household member has gone into hospital, will this affect my Local Housing Allowance room entitlement?
• I don’t agree with the Local Housing Allowance rate that applies to the property I live in, can I appeal against it?
• What if the Local Housing Allowance amount I receive is less than my rent?
• What if the Local Housing Allowance rate is higher than the rent my landlord is charging me?
• Does this mean that my Housing Benefit entitlement will always be the full Local Housing Allowance rate?
• My landlord has included services charges in with my rent, will these be deducted from the amount I will get?
• If my landlord increases the rent a few months after my benefit claim has been assessed will you re-assess my claim to take into account the rent increase?
• I’m on a joint tenancy with a friend, does this mean I will be entitled to the two bedroom rate?
• Can you pay my Local Housing Allowance benefit straight into my landlord’s bank account?
• What if I am in arrears with my rent?
• Why do I no longer have the option of asking you to pay my landlord direct?
• I don’t have a bank account, what can I do?
• I have a bank account but my overdraft will swallow up my benefit before I can pay my rent.
• Will the amount of Local Housing Allowance I receive change at any time?
• When will you pay me from?

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I’m already getting Housing Benefit, will I now come under the Local Housing Allowance scheme instead?

No. If you are already receiving Housing Benefit you will not be affected by the changes. You will only come under the new Local Housing Allowance scheme if you move to new private rented accommodation on or after 7 April 2008, or if you have a break in your existing claim of at least one week.

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How can I tell what the Local Housing Allowance rate will be for a property I am interested in renting?

We will publish the Local Housing Allowance rates for Plymouth by the end of each month for the following month. For example; the April rates will be available by the end of March to allow tenants expecting to find accommodation in April to know how much Local Housing Allowance they could get. The rates will be advertised in Council offices, Job Centres, Citizens Advice Bureaux and other organisations in the Plymouth area. The rates are also available on our website, please see our rates guide page.

The actual rate your Local Housing Allowance is based on will depend on the size of your household. The number of rooms you need may not necessarily be the same as the number of bedrooms there actually are in the property.

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Can I find out in advance of renting a property how much I will receive?

We can give you an estimate of the amount of benefit you will qualify for based on the information you give us. This amount may change when we receive all the evidence we require. You can now work out the amount you may qualify for yourself by using our online benefit calculator.

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Which month’s Local Housing Allowance rate will be used for my claim - the date of claim or when the claim is actually assessed?

The Local Housing Allowance rate would relate to the actual date of claim rather than the date of assessment. However, if the date of claim is before the Local Housing Allowance start date of 7 April 2008, the case would have to be assessed under existing Housing Benefit rules rather than the Local Housing Allowance scheme.

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I’ve worked out that my room allowance is 2 bedrooms as my partner and I have one child, but I want to rent a 3 bedroom house as my child with my ex-partner comes to stay at weekends. Will you pay me the 3 room Local Housing Allowance rate?

No. The room allowance is based on people who usually live with you and are part of your household. You can still rent a 3 bedroom property if you wish, but we can only pay you the 2 room rate. You will need to make up any shortfall in the rent yourself.

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If my household size changes temporarily, eg because a household member has gone into hospital, will this affect my Local Housing Allowance room entitlement?

No. Normal Housing Benefit rules on temporary absence from the home apply in Local Housing Allowance cases. A temporary stay in hospital will not normally make a difference for the first 52 weeks of absence.

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I don’t agree with the Local Housing Allowance rate that applies to the property I live in, can I appeal against it?

No. It is not possible to appeal against the Local Housing Allowance rates. This is because the level is set for the whole broad rental market area and would apply to all claimants who apply for benefit in any given month; so any change to the rate would affect them all. No individual can have the right to affect another person’s benefit entitlement.

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What if the Local Housing Allowance amount I receive is less than my rent?

As with the existing way of calculating Housing Benefit, you will be required to make up any shortfall between the benefit you receive and the rent due to your landlord.

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What if the Local Housing Allowance rate is higher than the rent my landlord is charging me?

If the Local Housing Allowance you are entitled to receive is higher than the rent you are paying, you can keep the excess (this is capped at £15 per week). This will not affect any other benefits you may be receiving.

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Does this mean that my Housing Benefit entitlement will always be the full Local Housing Allowance rate?

No. The Local Housing Allowance rate is the maximum amount you could get. The actual amount you are entitled to is still dependant on the level of your income and savings, and any non-dependants in the household, as in the existing Housing Benefit scheme.

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My landlord has included services charges in with my rent, will these be deducted from the amount I will get?

No. Providing the service charges (eg water rates and heating) are a condition of occupancy they will not be deducted from your Local Housing Allowance award.

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If my landlord increases the rent a few months after my benefit claim has been assessed will you re-assess my claim to take into account the rent increase?

No. A rate will be applied for the month in which your claim is made, or treated as being made. This will then be reviewed annually, unless a change of circumstances occurs which affects your room allowance within the 12 months.

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I’m on a joint tenancy with a friend, does this mean I will be entitled to the two bedroom rate?

No. Where a tenant does not have either exclusive use of two or more rooms, or exclusive use of one bedroom, a bathroom/toilet and a kitchen/cooking facility, a shared room rate will apply.

For example Tracey and Claire are joint tenants in a self contained flat, both claiming Housing Benefit separately. They are each entitled to the shared room rate. Then Claire's brother, Steven, moves in. Tracey is still entitled to the shared room rate while Claire is now entitled to the two room rate.

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Can you pay my Local Housing Allowance benefit straight into my landlord’s bank account?

If you are receiving Housing Benefit under the Local Housing Allowance scheme you will not have the option to ask for payments to be made direct to your landlord. Local Housing Allowance is normally paid to the tenant, usually into a bank account. It is then your responsibility to pay your rent to your landlord. If you have your benefit paid straight into your bank account you can set up a standing order to pay your landlord if you want to.

However, we recognise that sometimes people may have difficulty dealing with their finances and could risk losing their home as a result. We have safeguards in place to deal with these cases and in some circumstances where we feel it is in the best interests of the tenant we will pay Local Housing Allowance direct to the landlord. This could be on a short or long term basis, and will be reviewed regularly.

If you feel you may qualify for this safeguard, you can download the 'application for landlord direct payments' form from the documents table below.

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What if I am in arrears with my rent?

We will pay your Local Housing Allowance to you until such time as you fall 8 weeks or more in arrears with your rent. If the council are advised of your arrears we will consider paying your Local Housing Allowance direct to your landlord until your arrears fall below this level. Evidence of the arrears will be required so please ensure you keep a record of all rent paid to your landlord.

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Why do I no longer have the option of asking you to pay my landlord direct?

One of the key aims of Local Housing Allowance is to encourage tenants to take personal responsibility for budgeting and paying their rent themselves, rather than having it paid for them. Accepting this responsibility while on benefit should help make it easier to manage the move into work.

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I don’t have a bank account, what can I do?

The Council and the Government are promoting the use of bank accounts for private tenants receiving benefit. You can set up a basic bank account with almost any bank in Plymouth. Please see our leaflet titled 'information on bank accounts' for more details, this leaflet is available from our offices. Most people should be able to open a basic bank account, even those with a poor credit history.

The use of a standing order or direct debit to transfer your rent from your own account into your landlord’s is also an easy and effective method of payment.

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I have a bank account but my overdraft will swallow up my benefit before I can pay my rent.

If you are worried that any benefit paid into your account will be used by the bank to reduce or clear your overdraft leaving you no money to pay your rent, you can ask your bank to only use that money for your rent. This is called the 'first right of appropriation'. You must do this before the first Local Housing Allowance payment goes into your bank account. You may also find the links on the right of this page useful.

Alternatively, you could consider opening a basic bank account with another bank and having your Local Housing Allowance paid into that account.

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Will the amount of Local Housing Allowance I receive change at any time?

Once your claim has been assessed, the Local Housing Allowance figure will last for 12 months from the date of claim. Your claim will then be re-assessed using the Local Housing Allowance rates for the month of assessment, this is known as the anniversary date.

For example:

New claim couple A with no children

• Local Housing Allowance rate - 1 bedroom
• Claim made and benefit paid from 26 May 2008 using May 2008 Local Housing Allowance rate
• Local Housing Allowance anniversary date 25 May 2009 using May 2009 Local Housing Allowance rate

However, if there is a change in your circumstances which affects your Local Housing Allowance rate within that year (eg a non dependant moves in, which affects the number of rooms you are entitled to) your review date will then be 1 year from the new assessment date.

For example:

Couple A (as above) have a baby

• New Local Housing Allowance rate - 2 bedrooms
• Original claim made and paid from 26 May 2008 using May 2008 Local Housing Allowance rate
• New arrival to the family on 9 September 2008 using September 2008 Local Housing Allowance rate
• Local Housing Allowance anniversary date 8 September 2009 using September 2009 Local Housing Allowance rate

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When will you pay me from?

Benefit is usually paid from the Monday after we receive your claim, so it is important that you return an application form to us as soon as possible if you want to claim. If you don’t have all the information to hand, send in what you have. You can send any further information we need in later, as long as we receive it within 4 weeks of your claim.

We cannot normally backdate your claim unless you can tell us a good reason why you did not apply at the time. For example if you were in hospital, or were recently bereaved, or were ill, and you had no-one to help you with your affairs.

If you want to apply and think your claim should be backdated send in a letter with your claim telling us why you did not apply earlier, and we will consider your request.

If you make a claim on or after 7 April 2008 and your request for backdating to a date prior to the start of Local Housing Allowance is accepted your claim will be assessed under the existing Housing Benefit regulations and not the Local Housing Allowance scheme.

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