Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what plans he has to review the local housing allowance rate to ensure it is accurately aligned with the rental market.
Local Housing Allowance rates are monitored annually against the 30th percentile of local rents which are collected by the Rent Services in England, Scotland and Wales. The Rent Services publish the 30th percentile data alongside the Local Housing Allowance rates each year on their respective websites.
There are no plans to lift the four year freeze to Local Housing Allowance rates before April 2020. The Government recognises however, that the impact of this measure will vary, especially in areas of high rental growth and in view of this has made available 30 per cent of the savings to create Targeted Affordability Funding. This funding is used to increase Local Housing Allowance rates in areas where local rents have diverged the most. For example in 2017/18, 48 LHA rates have been increased by 3 per cent. Further Targeted Affordability Funding will be made available in 2018/19 and 2019/20.