Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will make an assessment of the potential merits of permanently linking local housing allowance rates to the bottom 30th percentile of local private rents to help ensure (a) affordable housing support and (b) a reduction in levels of child poverty.

My department is working closely with MHCLG as they develop the Long-Term Housing Strategy and through the Inter-Ministerial Group on Homelessness and Rough Sleeping.

The review of Local Housing Allowance (LHA) rates considers a range of factors, including impact of the rental market and decisions on LHA will be taken in the context of achieving the Government’s priorities and goals within this challenging fiscal environment.

LHA was increased to the 30^th percentile of local market rents in April 2024 costing an additional £1.2 bn in 2024/25 and £7bn over 5 years. LHA is not intended to cover all rents in all areas.

Any future decisions on LHA policy will include consideration of market rents and impacts of LHA rates, including on poverty.

For those who need further support, Discretionary Housing Payments (DHPs) are available from local authorities. DHPs can be paid to those entitled to Housing Benefit or Universal Credit who face a shortfall in meeting their housing costs.