Local Housing Allowance

1
Local Housing Allowance

• Alan Sinclair
• Benefits Manager
• City of Edinburgh Council

2
Objectives of HB Reform

• Promote fairness/equity for tenants
• Provide greater choice
• Be more transparent
• Encourage personal responsibility
• Simplify and speed up administration

3
How does LHA work?

• Flat rate allowance based on size of household
  paid to tenant
• Different levels of LHA for different areas
• Where LHA is above the rent charge, tenant keeps
  the difference
• Vulnerable tenants may have HB paid to landlord
• LHA rates set at average rents

4
Preparation for LHA

• Began 1 Year before implementation
• Discussions with DWP
• Landlord Forum/Vol Orgs/Advice Agencies
• Staff Meetings
• Software Supplier
• Banks

5
Publicity

• Leaflets to
• Landlords
• Tenants
• Advice Agencies
• Articles in
• Staff/Council Magazine
• Newspapers

6
Additional Resources

• Pathfinder Team
• Overpayment Officer
• Money Advice Worker

7
Results in Edinburgh

• 93 of tenants gained under LHA
• Average gain was 32.00 per week
• Some large individual gains
• Mainly due to overcrowded accommodation
• Also, unrealistically low rents
• Many tenants have moved to more appropriate
  accommodation

8
Size Criteria

• One Bedroom For
• any adult/adult couple
• any other adult aged 16 or over
• any two children under age 10
• any two children of the same sex age 15 or under
• any other child

9
Size Criteria

• Living Rooms
• 1-3 occupants entitled to one living room
• 4-6 occupants entitled to two living rooms
• 7 or more occupants entitled to three living
  rooms
• Example Couple with a son aged 8 and a daughter
  aged 13
• Entitled to the 5 room LHA rate

10
Results in Edinburgh

• A few landlords increasing rents
• Very few landlord complaints
• Letters sent to landlords tenants re direct
  payments
• Only about 300 out of 2100 returned
• Completed by 9 August
• Now 94 of payments direct to tenant

11
CEC Safeguards in place

• 8 weeks rent arrears pay to landlord
• However, if tenant misses one months rent
• Landlord to advise us in writing/e-mail
• Claim will be suspended no more payments made
• We will write to tenant re alleged arrears
• Tenant has 14 days to respond
• If no response or tenant confirms arrears, claim
  is re-activated and paid to landlord

12
CEC Safeguards in Place

• RENT ARREARS
• If HB is paid direct to the landlord, and
• The LHA rate is greater than the rent charge,
  then
• We can pay all or part of this excess charge to
  the Landlord to help clear the arrears, but
• Only with the agreement of the tenant
• Using the Mandate