Housing Costs: Government Support

Carla Denyer Excerpts

Wednesday 21st October 2026 Westminster Hall

[Andrew George]

My hon. Friend anticipates what I shall go on to say. One of my main messages concerns the impact of the 2024 housing allowance freeze; the Government will not be surprised by that—I gave the Minister advance notice of my questions. The allowance is supposed to be set at the 30th percentile—in other words, 30% of properties available on the market should be below the housing allowance. However, certainly in places like Cornwall, we are talking about it being the minus-30th percentile, effectively, because in areas like mine the local housing allowance is 30% below the lowest-cost available rental property in the marketplace. The 30% is relevant, but sadly not in the way that is required.

[Carla Denyer (Bristol Central) (Green)]

I thank the hon. Member for his important speech. In my constituency, only 2.3% of rental homes are affordable with local housing allowance—a far cry from the 30% that it is meant to be. Of course, that means that many more families, including families with children, are forced into rent arrears, poverty and homelessness. According to the Joseph Rowntree Foundation, introducing rent controls would reduce the cost of unfreezing local housing allowance by more than £1 billion by 2030. Does the hon. Member therefore agree that the Chancellor should introduce an emergency brake on rents as well as unfreeze local housing allowance at the Budget to address the gross distortion, inequality and unfairness in the housing market?

[Andrew George]

The hon. Lady makes a very good point. I will come to the extremely difficult decisions that any Government need to make about how this policy adds up with the available resource. Certainly, if one wants to avoid driving private landlords out of the market altogether, one has to form an understanding of how the market works. I entirely agree with the principle of what the hon. Lady is saying, and I will come to how we can how we can pay for these things. That is a very difficult question, which Opposition politicians generally avoid, instead asking for more money, while not necessarily explaining where they will get it from.

My primary message is that current Government policy is not working. It is driving the poorest into debt, food banks, homelessness and, in many cases, sadly, destitution. I have a number of questions for the Minister, which I sent to him in advance. If the Government know that a person’s private rental is bound to be at least x, why in my area of Kernow West, when the Valuation Office Agency assesses these factors, is the benefit level set at x minus 30% to 40%? That leaves people in the kind of poverty I described in the two cases I mentioned earlier. Have the Government reviewed the adequacy of the present methodology for LHA calculations, and are Ministers confident that the present arrangements do not risk tipping families and individuals in areas of high-priced private rental accommodation into rent arrears and potential destitution?

I understand that the Valuation Office Agency collects the rental data from landlords to determine the LHA, but how accurate and up to date is that data? Is the VOA using historical cases, where people have been living in accommodation for a very long time, and where the data would not reflect the price of that accommodation were it to come back on to the market? The Government need to answer many questions about this issue. I know the Minister is sympathetic.

One example was raised with me by Citizens Advice Cornwall. A family in Penzance consisting of either a couple or a single parent with two children of different sexes, one of whom is 10, meaning the children need separate bedrooms, would technically require a three-bedroomed house. Local housing allowance states that they can have a maximum of £812.76 per month. According to Rightmove last night, the lowest price for a privately rented three-bedroomed house in the Penzance area, a few miles away in Marazion, is £1,800, making a gap of £987.24 per month for that family. I could go through a large number of cases, but I do not have time now.