Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact of maintaining the level of Housing Benefit until 2026 on the affordability of housing for people on Housing Benefit.

Both Housing Benefit and the housing element of Universal Credit provide support for renters in the private and social rented sectors.

The Local Housing Allowance (LHA) determines the maximum housing support for households claiming either benefit can receive if they are privately renting.

Ahead of Autumn Budget 2024, DWP Ministers looked at a range of factors when considering the LHA rates for 2025/26. This included rental data, the impacts of LHA rates, rate increases in April 2024, and the wider fiscal context. The April 2024 one-year LHA increase cost an additional £1.2bn in 2024/25 and approximately £7bn over 5 years.

We have also invested £1bn in funding for both the Household Support Fund (HSF) and Discretionary Housing Payments (DHPs) (including Barnett impacts) for 2025/26 and the level of DHP funding has been maintained at current levels. DHPs are available from local authorities for those unable to meet a shortfall in their rent.

Any future decisions on LHA policy will be taken in the context of the Government’s missions, goals on housing and the challenging fiscal context.