Local Housing Allowance and Private Rented Housing: Cost of Living

(asked on 26th April 2023) - 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 impact of the increased rate of inflation and cost of living on (a) the adequacy of the Local Housing Allowance and (b) private renters.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 9th May 2023

The Government recognises the financial pressures tenants are facing and is providing total support of over £94bn over 2022-23 and 2023-24 to help households and individuals with the rising cost of living. Individuals who need help to make their rent payments may be eligible for a range of financial support through the welfare system.

LHA determines the maximum amount of housing support for Housing Benefit and Universal Credit claimants renting in the private rented sector. LHA is not intended to meet all rents in all areas.

In April 2020 LHA rates were raised to the 30th percentile of local market rents, a significant investment of almost £1 billion. We have maintained the increase since then so that everyone who benefited continues to do so.

The Local Housing Allowance (LHA) policy is kept under regular review. We monitor average rents and housing support levels provided to claimants to assess the impact of the policy. Any assessment made is always within the context of the economic landscape at the time.

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 nearly £1.6 billion in DHP funding to local authorities

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