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The Local Housing Allowance

The Local Housing Allowance. Introduction. Local Housing Allowance (LHA) Key factors Consultation Helping landlords manage payments Citizens Advice Bureau Vulnerability Bank accounts Early indications. LHA Key factors. Weekly LHA rates set monthly Claimants needs

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The Local Housing Allowance

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  1. The Local Housing Allowance

  2. Introduction • Local Housing Allowance (LHA) Key factors • Consultation • Helping landlords manage payments • Citizens Advice Bureau • Vulnerability • Bank accounts • Early indications

  3. LHA Key factors • Weekly LHA rates set monthly • Claimants needs • Claimant keeps excess rent • Claimant can choose how payments are made to them • Blackpool is using a PHASED approach to implement LHA

  4. Consultation • Local Housing Allowance information • Landlord consultation meetings • Stakeholder Consultation meeting

  5. Helping Landlords manage payments • Landlord Schedules • Direct to tenant details • 8 Weeks arrears • The Authority must be notified that arrears exist • The Authority will try to confirm with tenant • Once confirmed, payment will be made to landlord • Under 8 weeks • The Authority must be notified that arrears exist • The Authority will try to confirm with tenant • Payments suspended until situation resolved • Large payments • First payments of over 2 weeks will be made to the tenant in the landlord’s name • Last two week payment • The Authority will try to confirm non payment to landlord with tenant • Once confirmed, payment will be made to landlord

  6. Citizens Advice Bureau • Extra resource • 3 staff dedicated to LHA • Based in the Benefits office • Debt and budgeting advice • Free • Full service

  7. Vulnerability • The definition • LHA claimant “….is likely to have difficulty in managing his affairs” • Identifying vulnerable claimants • Liaison with large support organisations • Sending letters before conversion

  8. Bank Accounts • All local banks visited • Bank advice leaflet sent to all tenants • Citizen Advice Bureau Before LHA 12% of tenants – BACS Currently 68% of LHA claimants - BACS

  9. Early indications • 9,500 Private tenant cases • 7,500 will eventually be converted to LHA • 17/11/03 to 1/6/04 = 4,388 LHA cases • Vulnerability • 9% of LHA cases have payments made direct to landlord • 4% of LHA cases have associated arrears issues • Converted cases • Before LHA, eligible rent was 86% of average Gross rent • Average LHA is 96% of average Gross rent

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