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 freeze in Housing Benefit subsidy rates for temporary accommodation since January 2011 on local authority finances in London; and if he will take steps to uprate subsidy levels to reflect current housing costs.
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.
The rules governing Housing Benefit subsidy for temporary accommodation apply across Great Britain, including London. We recognise that local authorities are subject to a range of funding pressures and keep the subsidy arrangements under review.