Transition Arrangements
In the main only new claims and tenants who move in to a private assured shorthold tenancy will be paid Local Housing Allowance.
In the Pathfinder and Second Wave Group of Local Authorities (those detailed in the section above), any tenant who would have received less Housing Benefit under the LHA rules than under their previous scheme had their prior eligible rent protected until their LHA figure is higher than the benefit allowed under the previous scheme, after which time their eligible rent switchs to that set under the LHA rules.
Initially, where the LHA amount was more than the actual rent paid, the claimant was permitted to keep any excess Housing Benefit paid over and above their rental liability. The rules have been amended for the national roll out of LHA so that claimants will only be awarded a maximum LHA of £15 per week over and above their actual rent if they find a property cheaper than their applicable LHA rate. Any existing claimant in the Pathfinder/Second Wave Group authorities who receives more than this amount under the existing rules will also have this extra protected for 52 weeks, after which time the £15 maximum excess will apply. As part of the 2009 Budget, the Secretary of State for Work and Pensions proposed to amend the Housing Benefit regulations from 5 April 2010 so that the up to £15 weekly excess that customers can receive over and above their contractual rent is removed. This will mean that no claimant can receive more in Housing Benefit than they actually pay out in rent. This proposal would remove the incentives for tenants to seek less-expensive accommodation which was one of the primary rationales for the roll-out of Local Housing Allowance. Coupled with the removal of the supervisory role formerly played by the local rent officer, this raises questions about the long-term sustainability of the programme.
Where the landlord is a not for profit company (or voluntary organisation), a Registered Social Landlord or a Local Council that provides care support or supervision, they will be exempt from Local Housing Allowance and will fall under the housing benefit rules in operation prior to 2 January 1996.
Read more about this topic: Local Housing Allowance
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