What is Local Housing Allowance?

HOUSING BENEFIT UPDATE

Housing Benefit is being replaced by Universal Credit. You can only make a new claim for Housing Benefit if:

• you have reached State Pension age
• you are living in supported, sheltered or temporary housing

If you are getting Housing Benefit, you will receive a letter from the Department for Work and Pensions (DWP). The letter is called a ‘migration notice’. The notice will give you a deadline to apply for Universal Credit. If you don’t apply in time, you might receive less Universal Credit.

To find out more about moving to Universal Credit, visit Citizens Advice.

How is local housing allowance calculated?

The LHA that you will receive depends on:

• how many bedrooms you need
• the number of people in your household
• the area in which you live
• the amount of your income and savings.

Number of bedrooms

The maximum number of bedrooms you are allowed under the LHA rules is 4.

You can still rent a larger house, but you will only get benefit up to the maximum level for 4 bedrooms. You will have to meet any shortfall in your rent, or apply for a discretionary housing payment to help you.

Number of people in your household

You are assessed as needing a bedroom for each of the following that you have in your household:

• adult couple
• other adult aged over 16 or over
• 2 children of the same sex up to the age of 16
• 2 children regardless of sex under the age of 10
• any other child
• a non resident carer if you are claiming middle or higher rate care DLA or attendance allowance
• member of a couple who can’t share a bedroom because of a disability
• a disabled child under 16 who can’t share a room because of their disability
• a child in the armed forces who is away on duty and who lived with you before they went away and intends to return.

An extra bedroom is allowed if you need one for a:

• foster child or children
• non-resident carer (or team of carers) who regularly stays overnight to provide care to you or another household member because of a disability

You can use the LHA Direct website to calculate the maximum number of bedrooms you are entitled to.

The area in which you live

LHA rates are also limited according to where you live. These rates will increase on the 1st April 2024.

You can use the LHA Direct website to find out the current maximum amounts allowed in different areas. You can find out what the rates will be from April here.

Under 35s and the shared accommodation rate

If you are under 35, single and childless, you are generally only entitled to the standard rate for a single bedroom in shared accommodation (the ‘shared accommodation rate’). This is lower than the rate for a one bedroom property and applies even if you cannot find shared accommodation in your area and are living alone.

There are some circumstances where the shared accommodation rate does not apply even if you are under 35, including if you:

• are under the age of 25 and used to be in care
• are severely disabled
• share with another adult who is a member of your family (known as a non-dependant)
• are aged between 16-34 and have spent 3 months in a homeless hostel.

See our pages on Housing benefit changes for more details.

What does local housing allowance cover?

LHA payments can cover:

• your rent
• some service charges, if you have to pay them in order to live in the property.

It cannot cover charges for heating, hot water, lighting, laundry or cooking.

What if local housing allowance doesn’t cover my rent?

If you are struggling to pay a shortfall between the housing benefit or universal credit you receive under the LHA rules and the amount of your rent, you should get advice. Your options may include:

• applying for a discretionary housing payment
• moving somewhere cheaper
• negotiating a cheaper rent with your landlord in return for direct payments.

How do I find out more about local housing allowance?

You can find out more about LHA on the Gov.UK website.