Oral Answers to Questions

Vicky Foxcroft Excerpts

Monday 1st July 2019 Commons Chamber

[Alok Sharma]

Of course, I am happy to look at that individual case. Perhaps the hon. Gentleman will get in touch with my office after this session.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

7. What recent assessment her Department has made of the adequacy of levels of local housing allowance.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

Welfare reforms were designed to ensure a fair balance between public spending and supporting vulnerable people to meet their housing costs. LHA rates are not intended to meet all rents in all areas. However, the Secretary of State and I have committed to end the freeze to LHA in March 2020.

[Vicky Foxcroft]

Local housing allowance is supposed to cover the lowest 30% of market rents, but research by Shelter found that that is not possible in 97% of England. For example, in south-east London, local housing allowance will cover only the bottom 10% of rents. We have a housing crisis across the country and local housing allowance is not fit for purpose. Does the Minister agree that it must be raised to reflect the true cost of renting?

[Will Quince]

I thank the hon. Lady for her question. As I said, LHA rates are not intended to meet all rents in all areas. Housing benefit claimants have to make the same decisions about where to live as people who do not receive benefit. In 2019-20, targeted affordability funding has been used to increase over 80% of rates in London. Nevertheless, we recognise that this is an issue. The Secretary of State and I are alive to it and we are looking at several options ahead of a spending review bid.