Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of the Local Housing Allowance freeze on homelessness.

Local Housing Allowance (LHA) determines the maximum housing support for tenants 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. LHA rates are not intended to cover all rents in all areas.

LHA rates are reviewed annually at Autumn Budget. The Secretary of State confirmed in his Written Ministerial Statement that LHA rates would be maintained at their current 2024/25 levels for 2026/27.

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The impact on private renters was considered alongside factors such as rent levels across Great Britain, the fiscal context and welfare priorities including the decision to remove the two-child limit which will bring 450,000 children out of poverty.

Information on the number of households in receipt of LHA and those in shortfall (i.e. where contractual rent costs exceed LHA), is available on Stat-Xplore (https://stat-xplore.dwp.gov.uk/). Monthly Universal Credit statistics showing the number of households in receipt of LHA and those in shortfall are published in the Households on Universal Credit dataset, and the Housing Benefit – Data from April 2018 dataset, and are currently available to August 2025.

Users can log in or access Stat-Xplore as a guest, and if needed, can access guidance on how to extract the information required. There is also a Universal Credit Official Statistics: Stat-Xplore user guide.

Renters facing a shortfall in meeting their housing costs can apply for Discretionary Housing Payments (DHPs) from local authorities. From April 2026 DHPs for England will be incorporated into the Crisis and Resilience Fund (CRF). However, DWP would also point out that the causes of homelessness are multi-faceted and interact dynamically making it very difficult to isolate the relative importance of individual factors. We work closely with other departments, including MHCLG, to ensure the impacts of LHA on homelessness are considered.