Local Housing Allowance

(asked on 6th December 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will make an assessment of the potential merits of reintroducing Local Housing Allowance Targeted Affordability Funding where rents have fallen the furthest below the 30th percentile of average market rents since 2021.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 13th December 2022

Following an investment of £1b in 2020/21 to take Local Housing Allowance rates to the 30th percentile, they will be maintained at the elevated levels for financial year 2023/24 as assumed in the OBR baseline costings and therefore no savings are realised to re-invest in targeted funding.

We recognise rents are increasing but the challenging fiscal environment means that difficult decisions were necessary to ensure support is targeted effectively. The Chancellor announced at Autumn Statement a package of support worth £26 billion.

In 2023/24 around 8 million households on eligible means-tested benefits will get up to a further £900 in Cost of Living Payments. The benefit cap will be increased by CPI to ensure that households will see an increase in their benefits following uprating.

For those who require extra support, the government is extending the Household Support Fund providing an additional £1bn to help with the cost of household essentials, for the 2023-24 financial year, on top of what we have already provided since October 2021, bringing total funding for this support to £2.5 billion. In England this will be delivered through an extension to the Household Support Fund backed by £842 million, running from 1 April 2023 to 31 March 2024, which local authorities use to help households with the cost of essentials. It will be for the devolved administrations to decide how to allocate their additional Barnett funding.

For those who face a shortfall in meeting their housing costs and need further support. Discretionary Housing Payments (DHPs) are available from local authorities. Since 2011 the Government has provided almost £1.5 billion in DHP funding to local authorities.

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