If you're a private tenant, local housing allowance through housing benefit can help towards the cost of your rent.
The rate of the allowance depends on the number of rooms you need and the area you live in, and it ensures that those who live in similar circumstances in the same area receive the same amount of support towards their housing costs.
Local housing allowance does not apply to council housing or homes managed by registered social landlords. Nor will it apply if:
- your rent has been registered as a 'fair rent';
- your tenancy started before 1989;
- you live somewhere where you are provided with care, support or supervision; and
- you live in a caravan, mobile home or houseboat.
How it is worked out
The Scottish Government has established 'broad market rental areas', and the allowance for each area is set every month. The figure is based on the 'middle of the range' rental figure for the area. This means that means that half the rental properties of that size in the area will be affordable within the allowance that you receive.
Market evidence
The Scottish Government uses market evidence to set local housing allowances and to determine fair rents.
How much will you get?
If your property's rent is lower than the published LHA rate you can keep any excess benefit up to a maximum of £15 per week - this excess will not normally be taken into account when deciding other benefits.
However the rules are changing and from April 2011 you will no longer be able to keep the excess.
If the rent is higher than the LHA rate you will have to pay the difference or find alternative accommodation whose rent is within the LHA rates.
Note that entitlement to local housing allowance is means-tested and you will need to provide a valid tenancy agreement as proof.
How local housing allowance is paid
Local housing allowance is normally paid to the tenant, who will then pay the landlord.