Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if her Department will remove the 2011 cap on Local Housing Allowance payable for temporary accommodation through the Housing Benefit Subsidy system.

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 recognise the financial pressures which local authorities are experiencing. MHCLG are increasing funding for homelessness services this year by an extra £233 million compared to last year (2024/25).

We continue to keep the rates used for Housing Benefit subsidy under review and are working closely with MHCLG and the Inter-Ministerial Group on Homelessness and Rough Sleeping to explore the impacts of subsidy rates on local authorities.

Any future decisions on subsidy rates will be taken in the context of the Government’s missions, goals on housing and the current challenging financial environment at the appropriate fiscal event.