04/19/23

Local Housing Allowance

Alan Sinclair

Benefits Manager

City of Edinburgh Council

Objectives of HB Reform

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

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

Preparation for LHA

Began 1 Year before implementation Discussions with DWP Landlord Forum/Vol Orgs/Advice

Agencies Staff Meetings Software Supplier Banks

Publicity

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

Additional Resources

Pathfinder Team

Overpayment Officer

Money Advice Worker

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

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

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

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

CEC Safeguards in place8 weeks rent arrears – pay to landlordHowever, 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

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