Housing Benefit

How is Housing Benefit worked out?

Since 7 April 2008 new claims for privately rented accomodation are based on the Local Housing Allowance (LHA). These rates are set on a monthly basis by the Rent Service and may be found on the LHA Rates page. 

For claims made prior to 7 April 2008 which continue in payment are referred to the Rent Officer for a decision on a reasonable market rent for the property on a yearly basis. Once the claimant moves address the claim is paid based on the LHA rate.

Rent Officers are employed by the government to value tenancies in the private sector.

If a rent is considered to be unreasonably high, then the amount of Housing Benefit paid could be restricted. Housing Benefit may also be restricted because a tenant is living in a property that is larger than they need.

The following criteria are used when deciding whether a property is or is not too big for the tenants requirements. One bedroom is allowed for each of the following:-

• a married or unmarried couple
• a single person aged 16 or over
• two children under 16 of the same sex
• two children under 10
• a child under 16

Please refer to the Housing Benefit Office for more information about these criteria.

Housing Benefit cannot be paid for the part of the rent which covers services such as water rates, fuel costs or meals. The costs of these items are deducted from the rent payable before Housing Benefit is calculated.

The remaining figure is called the Eligible Rent.

For example:-

A person who receives Income Support or Job Seekers Allowance may be entitled to their full eligible rent. A person not on Income Support but on a low income may receive only part of the eligible rent as Housing Benefit.