Housing benefits are regulated by the Housing Benefit Regulations 2006, as amended by the Housing Benefit (Local Housing Allowance and Information Sharing) Amendment Regulations 2007, with the intention of assisting persons on a low income by contributing towards the rental and other such charges associated with living in a property. Housing benefits provide a rental allowance, funded by the state, to eligible Tenants. The housing benefit is paid over to the Tenant to be used specifically for rental purposes.
There are the following requirements for persons to be eligible for housing benefits:
Prior to April 2008, the Rent Allowance (RA) scheme was in force. This scheme was overly complicated and often unfairly implemented. Thus in April 2008 the Local Housing Allowance (LHA) scheme came into force. This new scheme provides a simplified version of the RA scheme, where the amount of the benefit depends on the following factors:
The LHA scheme will apply to the following Tenants:
The old RA scheme will apply to the following Tenants:
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