Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make it her policy to increase Local Housing Allowance rates in line with inflation.

The Local Housing Allowance (LHA) was introduced in 2008 and determines the maximum housing support for tenants in the private rented sector. Claimants in similar circumstances living in the same area are entitled to the same maximum rent allowance regardless of the contractual rent paid. LHA rates do not cover all rents in all areas.

In April 2024, LHA rates were restored at the 30^th percentile of local market rents at a cost of approximately £7bn over 5 years.

In relation to LHA rates remaining at current levels for 2025/26, the Government has had to take difficult decisions at Autumn Budget to address the challenging fiscal context. For LHA a range of factors were considered, including rental data, the impacts of LHA rates, the fact that rates were increased in April, and the wider fiscal context.

Decisions on LHA rates for future years will be taken in the context of the Government’s missions, housing priorities, and the fiscal context.

For those who need further support, Discretionary Housing Payments (DHPs) are available from local authorities. DHPs can be paid to those entitled to housing support who face a shortfall in meeting their housing costs.