Local Housing Allowance Rates

Lord Young of Cookham Excerpts

Wednesday 22nd February 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

The noble Baroness might like to be reminded that the LHA was originally set at 50th percentile of local market rents and then the policy was reformed, as she will know, in 2011, when it was reduced to 30th percentile. The reforms were made for a reason, because the scheme was unsustainable, with excessively high LHA rates in some areas. Having said all that, we are very aware of the pressures at the moment, as I said earlier, and that is why we have other initiatives to help those who are really struggling— I acknowledge that they are—in some cases with their housing costs.

[Lord Young of Cookham (Con)]

My noble friend has mentioned several times discretionary housing grants, which are available to top up the difference between the local housing allowance and rents. Should not more be done to make those better publicised and if, as the noble Baroness said, there is pressure on the local authorities that have these grants available, would it not be more economical to top up the discretionary housing grants for local authorities if the Government are unable to review local housing allowances?

[Viscount Younger of Leckie (Con)]

Yes. My noble friend makes a good point, and it may well be that better communication is required. I will certainly look into that. However, local authorities, as I said earlier, have broad discretion to spend in line with their local priorities, supported by the non-statutory guidance provided by my department. That provides a list, crucially, of priority groups to assist with their decision-making. Obviously, that needs to be informed perhaps by better communication in terms of where the needs are. There is no evidence that it is not working, but I will look at that.