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Local Housing Allowance

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?.

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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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