I can share with you the information that I have:-
It is clear in the guidance for the LHA that it can, in particular circumstances, be made payable to the landlord rather than the service users, however there have been concerns that the implementation of the LHA could potentially lead to reductions in the levels of Housing Benefit payable if service users are treated as living as single people in one room.
Discussions have taken place with the Housing Benefits Manager in Brighton, which is a pilot area for the LHA, and also Frank Newton of the Local Government Association who has been issuing advisory information connected to the LHA.
It is now clear that f there is "substantial board" included in the rent then the case is excluded from LHA (and direct payment provisions). However it is the responsibility of the Rent Service to determine if the board is substantial NOT the local authority.
The case must be referred to The Rent Service on a referral and the Rent Officer will decide if the board is substantial. If it is deemed to be substantial the RO will provide a valuation and the claim is exempt from LHA. If the RO decides the board is not substantial the RO will reject the referral saying that it is out of scope. The LA will then pay LHA.
We have not seen the RO definition of substantial but the Rent Officer in Leeds seems to use a rule of thumb of around 10-15% of the rent charge for board as substantial. This has been raised with the Rent Office in East Sussex and there appears to be consistency in this approach.
In the light of the above, it would appear that, in the majority of cases, Adult Placements where board is provided will be exempt from the LHA. Where an Adult Placement Scheme has claimed a rent which does not include a substantial element of board, the LHA would appear to be applicable.
Hope this helps
Elaine
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