Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the adequacy of local housing allowance rates.

Local Housing Allowance (LHA) rates are reviewed annually, usually in the Autumn. LHA determines the maximum housing support for tenants in the private rented sector and do not cover all rents in all areas. The Secretary of State’s decision to maintain LHA rates at current levels for 2025/26 considered a range of factors including rental data; the impacts of LHA rates; the fact that rates were increased in April; and the wider fiscal context.

We currently spend around £32bn annually on housing support for renters. The April 2024 one-year LHA increase cost an additional £1.2bn in 2024/25, and approximately £7bn over 5 years.

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

We continue to monitor shortfalls and rents and are working with MHCLG on their long-term housing strategy.