Universal Credit: Private Rented Housing

(asked on 29th June 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many and what proportion of those households in receipt of universal credit with the housing element in payment had rents that exceeded the local housing allowance (LHA) in (a) March 2020, (b) March 2021, (c) March 2022 and (d) March 2023; and what the median average gap is between the rent and the LHA for those households where rent exceeds the LHA in (a) England, (b) Scotland and (c) Wales.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 17th July 2023

The Local Housing Allowance (LHA) determines the maximum housing support for tenants in the private rented sector. LHA rates are not intended to cover all rents in all areas. Data on local LHA rates and averages can be found in the attachments provided.

In 2020 we spent almost £1 billion increasing LHA rates. These rates were aligned to the 30th percentile of market rents in Broad Rental Market Areas (BRMA) across the country, therefore in those areas with higher rent costs this is reflected in higher LHA rates for that BRMA. In 2022/23, the Government is projected to spend around £30 billion to support renters. This is approximately 1.4% of GDP, more than any other OECD country, with the next highest being 0.9% of GDP.

Information on the legislation increasing LHA rates to 30th percentile in April 2020 can be found here. Information on the legislation maintaining LHA rates at their current rates for 2023/24 can be found here.

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.

We recognise that rents are increasing. However, the challenging fiscal environment means that difficult decisions have been necessary to ensure support is targeted effectively. Overall, the Government is providing total support of over £94 billion over 2022/23 and 2023/24 to help households and individuals with the rising cost of living.

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