Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether he has made a recent assessment of the adequacy of Local Housing Allowance in preventing homelessness among Universal Credit claimants in London.

The Local Housing Allowance (LHA) determines the maximum financial support available for renters claiming either Universal Credit or Housing Benefit in the private rented sector and the level of LHA is based on the number of bedrooms a household needs and the area in which they live. LHA rates are not intended to meet all rents in all areas.

In 2024 LHA rates were increased to the 30^th percentile of local market rents costing an additional £7 billion over 5 years.

The Secretary of State for Work and Pensions reviews LHA rates annually, including the Shared Accommodation Rate. Decisions consider a range of factors such as market rents across Great Britain, poverty impacts and other government priorities.

The causes of homelessness are both personal and structural, and there is no single welfare or housing policy that can significantly reduce homelessness on its own. DWP continues to work closely with MHCLG to make sure interactions with homelessness are considered.

For under 35s that have experienced homelessness there is an exemption from the shared accommodation rate of LHA. Those who are exempt can claim the higher one-bedroom rate of LHA.

Renters receiving housing support who face a shortfall in meeting their rent costs can apply for a Crisis and Resilience Fund Housing Payment from local authorities in England.