Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if her Department will make an assessment of the potential impact of Temporary Housing Subsidy rates on local authority budgets.

DWP pays local authorities a Housing Benefit subsidy for temporary accommodation cases but this is subject to limits to incentivise local authorities to find settled accommodation for residents and to ensure good value for money for the taxpayer. Local authorities usually pay the costs of temporary accommodation upfront and then claim back from DWP through the Housing Benefit subsidy.

The rate of subsidy is usually based on 90% of the January 2011 Local Housing Allowance rates and maximum subsidy caps of £500 and £375 per week are in place in some high rent areas.

DWP collects data on local authority Housing Benefit expenditure and levels of Housing Benefit subsidy paid, including temporary accommodation expenditure in England, Scotland and Wales. Housing Benefit expenditure and subsidy data - GOV.UK (www.gov.uk)

We understand that local authorities are subject to many funding pressures which are impacting their budgets. However, any increases to the subsidy rates for temporary accommodation would need to be taken in the context of the government’s missions, goals on housing, and the fiscal position.