Local Housing Allowance

Local Housing Allowance was introduced on 7 April 2008. It’s the way we work out new claims for Housing Benefit for tenants renting accommodation from a private landlord. If you live in Council accommodation or other social housing, Local Housing Allowance does not affect you.

Under Local Housing Allowance, your benefit is not based on the property you live in. It is based on:

who lives with you
which area you live in
how much money you have coming in
what savings you have

The amount of benefit you are entitled to can also be affected by:

how much your rent is
whether anyone living with you is expected to contribute to your rent

Local Housing Allowance gives tenants more choice in where they live and it’s fairer too. It encourages tenants to be more financially responsible. This is because:

You will be entitled to the same amount of benefit as people in the same circumstances as you
You can find out how much benefit you can get before you rent a property
You will usually get your benefit paid directly to you and it’s up to you to pay the rent to your landlord
You can find out about your benefit more quickly

How does Local Housing Allowance affect the amount of benefit I receive?

Local Housing Allowance rates are based upon the number of bedrooms you or your family need. Each month the Valuation Office tells us the Local Housing Allowance rates for Darlington, and we publish them here on our website. To work out your benefit we look at the number of people living with you in your house and all your circumstances, and decide which rate applies to you. For more information please read The current rates and what rate applies to you [pdf document]

The rates can change month to month, and it depends upon the start date of your claim, which month’s rates apply to you. This rate is then used in the calculation for a period of 12 months. After 12 month’s, on the anniversary date, the Local Housing Allowance rate is reviewed.

Example – Jack and Jill move into their house and claim benefit on 19 April 2010, their benefit is based on the one bedroom rate set for April 2010. Their anniversary date will be 12 months later on 19 April 2011.

When is the Local Housing Allowance rate reviewed?

The Local Housing Allowance rate stays the same until one of the following events occurs:

12 months have passed and the anniversary date has been reached
you and your family move to a new address
the number of people in the household changes, for example someone moves in or out, a baby is born, or someone dies

How is my benefit paid, under Local Housing Allowance?

Usually benefit is paid directly to you. It is paid directly into your bank or building society account, if you have one.

If you do not already have a bank or building society account, you may need to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order. You can get advice about opening and running a bank account from any bank or building society. You can also get advice from welfare organisations such as Citizen’s Advice [external link]

Can I have my benefit paid directly to my landlord?

Your benefit is paid to you unless you are likely to have difficulties paying your rent, or there is a reason why it must be paid to your landlord, for example you are eight weeks or more in arrears.

If you are worried about managing your money, please ask us if we can help. In some cases we may be able to pay your rent to your landlord.

What will happen if I use my benefit for something else?

Your benefit is for you to pay your rent with. If you do not use your benefit to pay your rent, your landlord may take you to court, or try to evict you and you may lose your home.