Capacity planning for Local Housing Allowance to Improve Customer Freedom

1
The Local Housing Allowance
2
Introduction

• Local Housing Allowance (LHA) Key factors
• Consultation
• Helping landlords manage payments
• Citizens Advice Bureau
• Vulnerability
• Bank accounts
• Early indications

3
LHA Key factors

• Weekly LHA rates set monthly
• Claimants needs
• Claimant keeps excess rent
• Claimant can choose how payments are made to them
• Blackpool is using a PHASED approach to implement
  LHA

4
Consultation

• Local Housing Allowance information
• Landlord consultation meetings
• Stakeholder Consultation meeting

5
Helping Landlords manage payments

• Landlord Schedules
• Direct to tenant details
• 8 Weeks arrears
• The Authority must be notified that arrears exist
• The Authority will try to confirm with tenant
• Once confirmed, payment will be made to landlord
• Under 8 weeks
• The Authority must be notified that arrears exist
• The Authority will try to confirm with tenant
• Payments suspended until situation resolved
• Large payments
• First payments of over 2 weeks will be made to
  the tenant in the landlords name
• Last two week payment
• The Authority will try to confirm non payment to
  landlord with tenant
• Once confirmed, payment will be made to landlord

6
Citizens Advice Bureau

• Extra resource
• 3 staff dedicated to LHA
• Based in the Benefits office
• Debt and budgeting advice
• Free
• Full service

7
Vulnerability

• The definition
• LHA claimant .is likely to have difficulty in
  managing his affairs
• Identifying vulnerable claimants
• Liaison with large support organisations
• Sending letters before conversion

8
Bank Accounts

• All local banks visited
• Bank advice leaflet sent to all tenants
• Citizen Advice Bureau

Before LHA 12 of tenants BACS Currently 68 of
LHA claimants - BACS
9
Early indications

• 9,500 Private tenant cases
• 7,500 will eventually be converted to LHA
• 17/11/03 to 1/6/04 4,388 LHA cases

Vulnerability 9 of LHA cases have payments made
direct to landlord 4 of LHA cases have
associated arrears issues
Converted cases Before LHA, eligible rent was 86
of average Gross rent Average LHA is 96 of
average Gross rent