Local housing allowance - housing benefit for private tenants

Local housing allowance was introduced in April 2008. It is a form of housing benefit for people who rent from a private landlord.

It is a flat rate of benefit based on the number of bedrooms you need, not how many bedrooms your home actually has or how much rent you have to pay. The number of bedrooms allowed depends on who lives with you as part of your household.

Because the amount of local housing allowance is a flat rate of benefit this means you can see the maximum amount you will be entitled to when you are looking for somewhere to live.

There have been a number of recent changes to local housing allowance scheme. The information on this page was last updated in April 2013.

How is local housing allowance worked out?

The maximum amount of benefit you can get will be the lower of either:

• your local housing allowance rate or,

• the amount of rent you are charged

The maximum amount of benefit may be reduced depending on your income, capital, or other people who live with you.

Your local housing allowance rate is worked out by counting how many bedrooms your household is entitled to. You are entitled to 1 bedroom for:

• a couple;

• someone aged 16 or over;

• two children aged under 10;

• two children of the same sex aged under 16;

• any other child;

• a carer who does not live you but stays overnight to look after you or your partner;

• a disabled child who is unable to share a bedroom due to their disability;

• being a foster carer, whether you have a child fostered with you or not.

There are 5 local housing allowance rates:

• One bedroom shared accommodation rate

• One bedroom self contained accommodation rate

• Two bedroom rate

• Three bedroom rate

• Four bedroom rate

To work out how many bedrooms your household would be entitled to, please see the valuation office agency website.

The highest amount of benefit you can receive is the 4 bedroom rate even if the size of your household is such that you would be entitled to more than 4 bedrooms.

Find out how much local housing allowance you are entitled to.

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