Local Housing Allowance
Safeguard Policy
Introduction
Local Housing Allowance (LHA) is away of
working out and paying Housing Benefit for people who rent from
certain private landlords when they claim for the first time, move
to another address within the area or have a break in their
claim. Under the LHA scheme, Housing Benefit is usually paid
direct to the tenant and the tenant is then responsible for paying
rent to their landlord. Tenants cannot simply choose to
have their benefit paid to their landlord. These rules are
enforced to encourage financial inclusion, reduce the
barriers to work and help tenants to take responsibility in
managing their own affairs
There is a mandatory provision that already
exists for all privately rented tenancies where Housing Benefit is
payable and also applies to benefit calculated under the LHA
rules. This provision is that benefit will be paid to the
landlord if proof is provided that a tenant is 8 weeks or more in
arrears with the amount he/she is liable to pay his landlord as
rent (except where it is in the overriding interests of the tenant
not to make payment to the landlord). For the purposes of
Housing Benefit administration, rent is in arrears once it is
actually due to be paid regardless of whether payments are due in
arrears or in advance.
However, it is not in anyone’s best interests
to have to wait until arrears have accrued and the Government has
recognised that some tenants may struggle with the responsibility
of paying their rent. Therefore, the Department for Work and
Pensions (DWP) has provided guidance on when direct payments to the
landlord may be appropriate for benefit calculated under LHA rules
to ensure arrears don’t accrue. This means we can pay benefit
direct to the landlord if:
- we consider the tenant is likely to have difficulty managing
their affairs or
- it is improbable the tenant will pay his/her rent.
Broad discretion applies to making payments
direct to the landlord for a maximum of eight weeks until a
decision has been reached regarding whom Housing Benefit should be
paid to. This discretionary power prevents arrears accruing from
the outset and helps safeguards the claimants tenancy.
Payments are made direct to the landlord if
the tenant is having deductions from Income Support/Jobseeker’s
Allowance to pay off rent arrears.
Dover District Council has chosen to
adopt the following policy relating to these issues in support of
our Corporate objectives, residents and landlords.
Where Housing Benefit is calculated under
Local Housing Allowance rules, Dover District Council will follow
their ‘Safeguards and Direct Payments Guidance’ to:
- help prevent rent arrears and tenants being
put at risk of eviction
- help sustain tenancies for vulnerable
tenants
- help landlords be confident that benefit will
be paid direct to them if they have vulnerable tenants, prospective
vulnerable tenants or it is improbable that the tenant will pay
their rent
- put landlords at ease that arrears will not
accure whilst information is being gathered from their tenant
- help put tenants in touch with other agencies
where necessary so that they can be supported and given the
opportunity to manage their own financial affairs
- provide practical help and support to tenants
by referring them to the relevant financial advice agencies if a
need exists
- ensure Council officers make reasonable, fair
and consistent decisions
- promote a transparent and simple process that
is widely understood
- treat each case on its own merits.
Contact
Tel: 01304 872199
Email: revenues@dover.gov.uk
