Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the adequacy of Housing Benefit as a mechanism for supporting people to live in the private rented sector.

Local Housing Allowance (LHA) determines the maximum levels of housing support for households claiming Housing Benefit or the housing element of Universal Credit and who rent in the private rented sector.

LHA rates are reviewed annually, usually at an Autumn fiscal event. LHA rates are based on the area of the country a person lives and their bedroom entitlement.

The decision to maintain LHA rates at current levels for 2025/26 was taken after a range of factors were considered, including 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.

In the Private Rented Sector, households in similar circumstances living in the same area are entitled to the same maximum rent allowance regardless of the contractual rent paid. However, LHA rates do not cover all rents in all areas.

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. This includes the recent Spending Review announcement of a £39 billion successor to the Affordable Homes Programme over 10 years from 2026-27 to 2035-36.

Discretionary Housing Payments (DHPs) are available from local authorities to those who face a shortfall in meeting their housing costs.