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Local Housing Allowance

Learn about the objectives and workings of the Local Housing Allowance (LHA) reform in Edinburgh, designed to promote fairness, provide choice, and simplify administration. Discover the size criteria, safeguards, and results of the LHA implementation.

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Local Housing Allowance

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  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. SizeCriteria • 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 month’s 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

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