Local Housing Allowance (LHA) will be reinstated to the 30th percentile from April 2024, after being frozen since 2020.
This means the lowest 30% of private rents should become affordable to those claiming benefits, including our mid-market rent properties.
What is Local Housing Allowance (LHA):
LHA determines the amount of housing support for Universal Credit and Housing Benefit claimants in private rented accommodation. It’s based on property size and 30th-percentile rent for different areas.
The increase will benefit the poorest families on benefits, providing an average increase of £800 per year towards housing costs.
How much will the Local Housing Allowance be?
The amount of Local Housing Allowance you could be entitled to will depend on your home, household income and circumstances. The table below shows the new maximum amounts for each property type.
Extra help is available if you have a rent shortfall
You can seek help from your local council if you’re facing a rent shortfall through Discretionary Housing Payments (DHP). There’s no guarantee of approval or duration of payment. However, if you were [previously denied DHP, you might now qualify.
What do I need to do now?
If you’re already receiving Universal Credit or Housing Benefit for housing costs then the new rate will be applied automatically from April 1st. If you’re not currently getting help with housing costs but facing financial strain or experiencing changes, it’s important to review your benefit entitlement.
Remember to update your Universal Credit journal or inform your Local Housing Benefit team of any changes to prevent payment shortfalls or over-payments.
Unsure if you are entitled to LHA, or would like to discuss further?
We have a specialist Alternative Tenures Team here to help you. There are many ways you can get in touch, just choose the method which is most convenient for you. Click on the following link for full details – How to contact us
Learn more about Local Housing Allowance
Benefit Rate Changes 2024/25
Millions of people across the UK will also receive essential increases to their benefits from April, including State Pension, Universal Credit and Employment Support Allowance. Inflation-linked benefits and tax credits will rise by 6.7% from April 2024, in line with the Consumer Price Inflation (CPI) rate in September 2023.
For example, from April 2024:
Universal Credit standard allowance for a single person aged 25 and over will increase from £368.74 to £393.45 per month. For joint claimants both aged 25 and over, the standard allowance will increase from £578.82 to £617.60 per month.
New state pension will increase to £221.20 per week for those reaching State Pension age on or after 6 April 2016, up from £203.85 in 2023/24.
Basic state pension will increase to £169.50 per week (the core amount in the old State Pension system), which is up from £156.20 in 2023/24.
Pension Credit standard minimum guarantee will increase to £218.15 per week for single claimants and £332.95 per week for couples.
Child Benefit income threshold will be higher from £50,000 to £60,000 in April 2024 with the top of the taper for withdrawing the benefit being raised from £60,000 to £80,000. This is estimated to benefit half a million families.
Download a copy of the full benefits and pensions rates for 2024/25 here.
Have you checked your benefit entitlement recently?
The Increase in Local Housing Allowance and annual benefit uprating is a reminder of the importance of reviewing your benefit entitlement each year to ensure you and your household receive all of the support you are entitled to.
We have an in-house benefit calculator available on our website to help you find out what support you may be eligible for. Access the benefit & budgeting calculator here.
We want to support you
We provide in-house Tenancy Support Services to give help, advice and support. Our team specialises in various areas, including:
Financial Wellbeing: Our Money Advisors are equipped to offer expert advice on managing finances and overcoming debt challenges. We can assist you in maximising your income and devising strategies to address any outstanding debts.
Benefit Eligibility: We can assess your eligibility for benefits such as Universal Credit and guide you through the application process. Additionally, we can help you explore potential funding opportunities or grants that you may qualify for.
Referrals to Specialist Services: Should you require specialised assistance, we can facilitate referrals to external agencies across health, social care & the third sector. We can make referrals to specialist debt advice through Citizens Advice in Fife, Perth & Kinross and Forth Valley.
Energy Efficiency Support: Our energy advice service is designed to help you access affordable heating solutions, ensuring your comfort and well-being; whilst lowering costs. We provide comprehensive home energy assessments, whilst also looking at reducing bills and changing behaviours to improve home energy efficiency.
For more information on LHA or if you’d like to speak to a member of our Tenancy Support Services team, please don’t hesitate to contact us on:
Tel: 01592 630922
Email: tenancysupportserviceteam@kha.scot
