Local Housing Allowance

(asked on 24th February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make available funding to increase local housing allowance to cover average rents.


Answered by
Steve Barclay Portrait
Steve Barclay
Secretary of State for Environment, Food and Rural Affairs
This question was answered on 2nd March 2021

Local Housing Allowance (LHA) rates have been relinked to the 30th percentile for 2020-21, at a cost of almost £1 billion. Over 1.5 million households have gained just over £600 per year on average this year in additional support, while for people renting in the highest demand areas the gain will be even higher, for example, around 500,000 claimants had an increase of more than £100 per month. We are maintaining LHA rates at the same cash level next year to ensure that claimants continue to benefit from this increase, rather than reverting back to previous rates, which were significantly less generous.

For claimants with higher rents, additional support is also available through Discretionary Housing Payments (DHPs). Local authorities have a combined budget of £180m for DHPs for this financial year.

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