I am confused with my LHA

SingleSue

Thanks silvercar......what were the reasons for LHA being brought in instead of HB?

Sorry for all the questions but I just like to get an understanding of what is happening and why.

Just my curious nature I suppose!

Jowo_2

The expressed reason to implement LHA is as follows

Fairness: LHA bases the maximum amount paid to tenants on the size, composition and location of the household. Therefore, two households in similar circumstances in the same area will be entitled to similar amount of benefits.

Choice: tenants are able to take on greater responsibility and choose how to spend their income in a similar way to tenants who are not in receipt of benefits. Like other tenants they are able to choose whether to rent a larger property, or spend less on housing and increase their available income.

Transparency: The current link between Housing Benefit and individual rents is complex and does not set out clearly what level of state support is available for people on low incomes. A clear and transparent set of allowance rates helps tenants (and landlords) know how much financial help is available from the state. Tenants are able to compare how much support is available towards their housing costs in different areas and for different property sizes.

Personal responsibility: Empowering people to budget for and to pay their rent themselves, rather than having it paid for them, helps develop the skills unemployed tenants will need as they move back into work. Currently around 40% of Housing Benefit payments in the private rented sector are made to tenants, with the remainder paid straight to landlords. The Government believes that, where possible, local housing allowance should be paid to tenants, as are most other benefits and tax credits.

Financial inclusion – Ideally, we want people to have their housing payments paid into a bank account and to set up a standing order to pay the rent to their landlord. This has the advantage of being a safe and secure method of payment and provides certainty for landlords that rent will be paid.

Improved administration - For working age tenants, LHA provides a simpler system and also helps speed up administration of housing payments, giving tenants more confidence when starting a job that any in-work benefit will be paid quickly. A more transparent system may also improve the ability of individuals to move between areas and to take advantage of employment opportunities.


http://www.maldon.gov.uk/LivingHere/CTBenBR/Benefits/localhousingallowance/Default.htm#why

socrates

One of the main reasons for LHA being introduced - which is unwritten - is to reduce the amount of people in temporary accommodation.

In Greater London (and probably beyond) Local Authorities have been targeted to reduce the amount of people in temp. accom by 50% - before the end of 2010

It can cost £60 a day in London to have a family in temp accom. so over a month £1800 - whereas a 2 bedroom flat at £970 is a lot less.

So the extra £65 or even £100 other posters are moaning about is insignificant.

Plus I would love to know where you can find 'decent' 2 bed flats in Enfield/North London - for £700/750- that are not above shops or out in Broxbourne or Cheshunt.

£750 would not even pay for the mortgage, insurances and other obligations of a LL on a 2 bedroom flat - even if they put down an average 15% deposit and were interest only at an average rate of 5%.

LL's are running a business - like any business they need to make money or at least break even.

HB was less than LHA - LHA is just more realistic - and HB was open to fraud by complicit Rent Officers and LL's.

Saying that LHA is too high and should be reduced does not solve the problem.

The 'system' can be played - by both sides - just like the banks and MP's 'have played the system' - wherever and whenever they have been given an opportunity to do so