Local Housing Allowance

(asked on 4th December 2023) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government what assessment they have made of the potential benefits of ending the freeze in Local Housing Allowance rates before April 2024.


This question was answered on 12th December 2023

As announced by the Chancellor in the recent Autumn Statement, the Government will be investing £1.2 billion in 24/25 increasing LHA rates to the 30th percentile of local market rents. This is a significant investment of over £7 billion over the next five years.

Secondary legislation is required for this increase, which will be laid in January and will come into force by 31st January 2024. This allows the Department for Work and Pensions and local authorities sufficient time to implement the rates from April 2024 and ensure claimants are paid accurately. Increases to other benefits also apply from April 2024 onwards.

For those who face a shortfall in meeting their housing costs and need further support Discretionary Housing Payments (DHPs) are available from local authorities. Since 2011 the Government has provided nearly £1.7 billion in DHP funding to local authorities.

Since October 2021, Government has provided over £2 billion to local authorities in England via the Household Support Fund (HSF) for them to provide discretionary support with the cost of essentials to those most in need. As with all government spending in England, the HSF has led to consequential increases in Barnett funding, which the Devolved Administrations can spend at their discretion.

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