What are the Local Housing Allowance rates?

Local Housing Allowance (LHA) is the scheme used to calculate your entitlement to housing benefit. LHA has been phased in and only affects tenants in the mainstream privately rented sector who:

  1. Makes a new claim for housing benefit
  2. Changes address
  3. Has a break in their housing benefit claim of at least one week

If an existing tenant remains in a property and continues to claim housing benefit continuously, he/she will continue to be treated under the existing rules.

LHA will mean that most tenants will be paid their housing benefit directly and will not have the option to elect for benefit to be paid to their landlords. It will be the tenant's responsibility to pay the rent to his/her landlord.

There are, however, safeguards in place, as explained in more detail below.

Tenants renting accommodation from a private landlord can calculate the possible amount of housing benefit available to them by visiting the Valuation Office Agency (VOA) website.

Local Housing Allowance – Safeguards

As it has been recognised that some tenants may struggle with the responsibility of paying their rent, safeguards will be put in place. Local Authorities will be able to exercise a certain amount of discretion as to who should receive direct payments.

For example, if a tenant is likely to have difficulty in managing their affairs, he/she could be deemed as vulnerable. Similarly, if there is a reason, supported by evidence, to believe that a tenant is unlikely to pay, a landlord can request to be paid the LHA directly. Again, this will be at the discretion of the Local Authority.

In cases where tenants have accrued at least eight weeks' arrears, landlords can ask the council to pay housing benefit to them directly and not their tenant. The authority may then decide to make payments to the landlord until the arrears have been cleared.

How much will tenants get?

The LHA figures are determined by the Rent Service, which is an agency of the Inland Revenue and completely independent of the Council. The Rent Service gathers data of tenancies offered for letting, in an area known as a Broad Rental Market Area (BRMA). The BRMAs are not restricted to arbitrary or administrative boundaries, but are determined by common factors in the rental market.

Weekly Local Housing Allowance Rates for the period 1 April 2013 to 31 March 2014

Peaks & Dales BRMA  
Shared Accommodation Rate                                                                £68.12 per week
One Bedroom Rate £88.44 per week
Two Bedrooms Rate                                                                          £109.62 per week
Three Bedrooms Rate                                                                     £126.92 per week
Four Bedrooms Rate                                                                         £160.37 per week
Southern Greater Manchester BRMA  
Shared Accommodation Rate                                                             £60.23 per week
One Bedroom Rate                                                                               £100.24 per week
Two Bedrooms Rate                                                                            £126.92 per week
Three Bedrooms Rate                                                                          £140.33 per week
Four Bedrooms Rate                                                                          £196.15 per week
Tameside & Glossop BRMA  
Shared Accommodation Rate                                                              £57.69 per week
One Bedroom Rate                                                                               £86.54 per week
Two Bedrooms Rate                                                                         £103.85 per week
Three Bedrooms Rate                                                                        £126.92 per week
Four Bedrooms Rate                                                                         £153.30 per week  

Basic Bank Accounts for Tenants

One of the fundamental aims of the Government’s welfare reforms is for individuals to take responsibility for their finances and housing costs. As customers now receive their Housing Benefit directly, they will need to have arrangements in place for paying rent to their landlord.

Many banks offer basic bank accounts, which may be suitable for tenants who just want to be able to receive their Housing Benefit and set up standing orders, so they can arrange regular payments to their landlord.

Last updated: 18th April 2013

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