1. Local Housing Allowance
Alan Sinclair
Benefits Manager
City of Edinburgh Council
10/14/2019

2. Objectives of HB Reform
Promote fairness/equity for tenants
Provide greater choice
Be more transparent
Encourage personal responsibility
Simplify and speed up administration

3. How does LHA work?
Flat rate allowance based on size of household paid to tenant
Different levels of LHA for different areas
Where LHA is above the rent charge, tenant keeps the difference
Vulnerable tenants may have HB paid to landlord
LHA rates set at average rents

4. Preparation for LHA Began 1 Year before implementation
Discussions with DWP
Landlord Forum/Vol Orgs/Advice Agencies
Staff Meetings
Software Supplier
Banks

5. Publicity Leaflets to: Landlords Tenants Advice Agencies Articles in:
Staff/Council Magazine
Newspapers

6. Additional Resources Pathfinder Team Overpayment Officer
Money Advice Worker

7. Results in Edinburgh 93% of tenants gained under LHA
Average gain was £32.00 per week
Some large individual gains
Mainly due to overcrowded accommodation
Also, unrealistically low rents
Many tenants have moved to more appropriate accommodation

8. Size Criteria One Bedroom For: any adult/adult couple
any other adult aged 16 or over
any two children under age 10
any two children of the same sex age 15 or under
any other child

9. Size Criteria Living Rooms: 1-3 occupants entitled to one living room
4-6 occupants entitled to two living rooms
7 or more occupants entitled to three living rooms
Example: Couple with a son aged 8 and a daughter aged 13
Entitled to the 5 room LHA rate

10. Results in Edinburgh A few landlords increasing rents
Very few landlord complaints
Letters sent to landlords & tenants re: direct payments
Only about 300 out of 2100 returned
Completed by 9 August
Now 94% of payments direct to tenant

11. CEC Safeguards in place
8 weeks rent arrears – pay to landlord
However, if tenant misses one month’s rent:
Landlord to advise us in writing/
Claim will be suspended – no more payments made
We will write to tenant re: alleged arrears
Tenant has 14 days to respond
If no response or tenant confirms arrears, claim is re-activated and paid to landlord

12. CEC Safeguards in Place
RENT ARREARS
If HB is paid direct to the landlord, and
The LHA rate is greater than the rent charge, then
We can pay all or part of this excess charge to the Landlord to help clear the arrears, but
Only with the agreement of the tenant
Using the Mandate