Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what data his department holds on the number and proportion of individuals in receipt of housing cost support at the shared accommodation rate with rent costs that (a) exceed and (b) are below the local housing allowance in each (i) rental market area and (ii) local authority area; and what estimate he has made of the median average gap between housing cost support and rent costs for individuals eligible for only the shared accommodation rate per (A) rental market area and (B) local authority area.
This information is not readily available and to provide it would incur disproportionate costs.
The Shared Accommodation Rate (SAR) of the Local Housing Allowance applies to Housing Benefit or Universal Credit claimants who are under 35 years of age, living on their own, and renting privately, they will be entitled to the SAR regardless of the size of property that they rent. These rules reflect the housing expectations of people of a similar age not in receipt of benefits.
LHA rates are not intended to cover all rents in all areas.
For 2022/23 we are projected to have spent almost £30 billion to support renters with their housing costs.
In addition, LHA rates, including SAR will be increased from April 2024 to the 30th percentile of local market rents at a cost of £1.2 billion. This will mean 1.6 million private renters in receipt of Housing Benefit or Universal Credit (UC) will gain on average around £800 a year in additional help towards their rental costs in 2024-25.
For those who face a shortfall in meeting their housing costs and require additional support Discretionary Housing Payments (DHP) are available from local authorities. Since 2011 the Government has provided nearly £1.7 billion to local authorities for households who need additional support with their housing costs.