Local Housing Allowance (LHA) was introduced on 7 April 2008 to provide Housing Benefit entitlement for tenants renting private sector accommodation in England, Scotland and Wales. The LHA system introduced significant changes to the way Housing Benefit (HB) levels are restricted and how benefit is paid. It does not replace Housing Benefit - it is just a different way of calculating entitlement under the existing Housing Benefit scheme. Its aim is to improve levels of transparency when calculating Housing Benefit. Under LHA, a flat allowance is used to decide the eligible rent of all claimants with similar sized households living in a broad rental market area, rather than tying the level of benefit to the individual property. This is supposed to provide an incentive for those on Housing Benefit to find cheaper accommodation.
Read more about Local Housing Allowance: Background, Operation of Local Housing Allowance, Eligibility, Transition Arrangements, Council and Housing Association Tenants, Direct Payments, LHA Rates, Appeals, Criticisms
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