Oral Answers to Questions

Dan Carden Excerpts

Monday 19th June 2023 Commons Chamber

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

2. What assessment his Department has made of the adequacy of the local housing allowance.

[Dan Carden (Liverpool, Walton) (Lab)]

18. What assessment his Department has made of the adequacy of the local housing allowance.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

The local housing allowance policy is kept under regular review and rates are reviewed annually. LHA rates were boosted with a £1 billion funding increase in 2010, and this significant investment has been maintained since then. Discretionary housing payments, or DHPs, are available for those who face a shortfall in meeting their housing costs.

--- Later in debate ---

[Mims Davies]

There is no one-size-fits-all in regard to the challenge we face. This is a multi-layered and multi-textured challenge, and I hope the hon. Gentleman will be assured that I am focused on addressing the issue of rising housing costs. To that end, I am engaging with the Department for Levelling Up, Housing and Communities, and have consulted with the Local Government Association and other stakeholders. The hon. Gentleman has noted the devolved point—of course, I will look at that issue as well. LHA rates are not intended to meet all rents in all areas where rents may perhaps be more expensive. Those in receipt of benefits will have to make challenging choices, as others do, but people listening today should have a look at the household support fund and the benefits calculator on gov.uk and make sure that they are getting all the support that may be out there, as well as the cost of living payments.

[Dan Carden]

I listened carefully to the Minister’s answer. Liverpool, Walton is the most deprived constituency in the whole of England, yet the annual gap between local housing allowance and the cheapest 30% of properties now stands at over £1,500. My casework contains more and more heartbreaking stories of families unable to afford the cost of their housing. People need their Government to act on rising private rents and the lack of decent homes: to raise the allowances and take control on rents in the short term, but to increase the supply of housing in the long term. What is this Government’s plan?

[Mims Davies]

Mr Speaker, may I just confirm that the LHA rates were boosted by a £1 billion funding increase in 2020? I may have said 2010, so I apologise to the House, but that significant investment is maintained.

I recognise that rents are increasing, as the hon. Gentleman has said, and that it is a challenging fiscal environment and difficult decisions are having to be made. He has mentioned the most vulnerable. For those of working age or with disability benefits, those benefits have been increased in line with inflation for 2023-24. The benefit cap has also increased, but I want to reassure the House that I understand this is a real concern for many of our constituents of all sizes of house, and I am focused on addressing those challenges.