Local Housing Allowance (LHA) is failing tenants and landlords in its current form, new research from Shelter shows.

Shelter surveyed more than 450 LHA claimants for their report 'For whose benefit?' and the results reveal a series of systematic flaws with the implementation of LHA. This has left thousands of tenants struggling to manage their finances, with many in danger of losing their homes.

Shelter says LHA, a form of housing benefit which was introduced last year for tenants in private rented housing, is not fulfilling its original objectives and is in urgent need of reform.

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It also says the Government must immediately restore choice to tenants about whether LHA is paid direct to them or to their landlord, and undertake its promised two year review of LHA to rectify the current problems.

LHA was designed to promote fairness, choice and personal responsibility for claimants. However, Shelter's research shows that LHA in its current form is actually taking choice away from claimants and causing serious financial hardship, with 95 per cent of respondents struggling to manage their finances.

Shelter's Director of Policy and Campaigns, Kay Boycott, said: "LHA was intended to introduce desperately needed reform to housing benefit. While we support the original principles of the system, LHA is currently failing tenants and landlords. Our research shows the government must make urgent changes to LHA to ensure claimants do not continue to be disadvantaged."

(CD/BMcc)