Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if her Department will remove the cap on housing benefit subsidy rates for temporary accommodation.
DWP pays local authorities a Housing Benefit subsidy for temporary accommodation cases. There are restrictions on the amount paid, including a subsidy cap which is £500 per week in certain areas of London or £375 elsewhere.
We appreciate these are difficult times and local authorities are subject to many funding pressures. However, any increases to the Housing Benefit subsidy paid to local authorities would need to be taken in the context of the government’s missions, goals on housing, and the fiscal position.
We will continue to keep the subsidy arrangements under review.