Oral Answers to Questions

Afzal Khan Excerpts

Monday 5th December 2022 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

1. What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

[Afzal Khan (Manchester, Gorton) (Lab)]

2. What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

[Dame Nia Griffith (Llanelli) (Lab)]

5. What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

--- Later in debate ---

[Mel Stride]

As the hon. Gentleman will know, annually I review all benefits, including LHA—indeed, around this time next year, I will do precisely that. It has to be borne in mind that we are currently spending almost £30 billion a year on housing allowance and that figure is expected to increase to around £50 billion by 2050, so there are cost considerations.

[Afzal Khan]

The ongoing impact of the freeze on LHA is that more people are effectively being priced out of the private rental sector, with more and more housing becoming unaffordable. Research by Crisis showed that just 4% of three-bedroom homes advertised in Manchester were affordable on LHA rates. Tenants are forced to use increasingly larger proportions of their income on rent, at the height of a cost of living crisis. Will the Minister commit to annually raising the local housing allowance in line with inflation?

[Mel Stride]

As I have just indicated, I will review that in just under a year. There are of course the discretionary housing payments, which are administered by local authorities for those who feel that they need additional support, and I also point the hon. Gentleman in the direction of the significant cost of living payments that we are providing at the moment to support those in most need.