Changes to the Local Housing Allowance (LHA)
The government plans to up-rate the LHA rates every April in line with the Consumer Price Index (CPI), instead of being set every month. Find out how the changes may affect you.
The government plans to up-rate the LHA rates every April in line with the Consumer Price Index (CPI), instead of being set every month.
Up-rating of LHA in line with the CPI figure will bring stability and ensure expenditure in the private rented sector is contained at a reasonable level. It will also bring Housing benefit into line with the annual up-rating of other benefits
Annual up-rating makes LHA simpler for claimants and landlords to understand and easier for people to plan for the future when they know the maximum amount of Housing benefit that will be available for the year ahead.
The move to annual CPI up-rating of LHA rates from April 2013 means that the current process for reviewing the LHA at the anniversary date (review date) of claim is no longer a requirement. This is because all claimants will have their benefit assessed each April when the new rates take effect and therefore the anniversary date will become unnecessary. Setting the rates annually will also provide an opportunity to simplify the current review arrangements.