Local Housing Allowance Rates

Baroness Thornhill Excerpts

Wednesday 22nd February 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

I absolutely hear the noble Baroness, because we recognise that rents are increasing—there is certainly lots of anecdotal evidence of that in the press. However, the challenging fiscal environment means that difficult decisions were necessary to ensure that support is targeted effectively. That is why the Chancellor announced at the Autumn Statement a substantial package of cost of living support to target the most vulnerable households. As I mentioned earlier, one of the initiatives for those who require additional support is the discretionary housing payments available from local authorities, which are best able to target those funds.

[Baroness Thornhill (LD)]

My Lords, the overall level of housing benefit indeed remains a difficult political decision. However, does the Minister agree that it is the way the current local housing allowance system is structured that produces such an arbitrary and unfair system, particularly for private sector renters in high-rent areas? In the face of such overwhelming IFS evidence to prove this, are the Government giving any consideration to reframing the way that housing benefit is calculated in order to remove this growing unfairness?

[Viscount Younger of Leckie (Con)]

Again, I note the comments made by the noble Baroness. We are very aware of this, and we are aware of the juxtaposition of what central government can do and the role of local authorities. As I said earlier to the noble Baroness, Lady Lister, local authorities are best placed to understand exactly where the funds that we give them are best targeted. However, there is more than that; I mentioned the discretionary housing payments, but we also have the household support fund. There are a number of other initiatives which are important to mention as regards helping people, particularly to stay in their homes.