Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment he has made of the potential merits of increasing the Local Housing Allowance in the context of the cost of living crisis.

The Local Housing Allowance policy is kept under regular review, we monitor average rents and housing support levels provided to claimants to assess the impact of the policy.

In April 2020 Local Housing Allowance (LHA) rates were raised to the 30th percentile of local market rents, a significant investment of almost £1 billion, we have maintained the increase since then so that everyone who benefited from the increase continues to do so. LHA rates are not intended to cover all rents in all areas.

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 £1.6 billion in DHP funding to local authorities

We recognise that rents are increasing. However, the challenging fiscal environment means that difficult decisions were necessary to ensure support is targeted effectively.

The Government announced substantial cost of living support for 2023/24 in the Autumn Statement. This is intended to provide stability and certainty for households and includes Cost of Living Payments for the most vulnerable, meaning around 8 million households on eligible means-tested benefits will get up to a further £900 in Payments in 2023/24.

In addition, to protect the most vulnerable, benefits and state pensions will be increased by 10.1% in 2023-24.

For those who need additional support the Government is providing an additional £1 billion of funding, including Barnett impact, to enable a further extension to the Household Support Fund in England over the 2023/24 financial year. In England, this scheme will be backed by £842 million, running from 1 April 2023 to 31 March 2024, which local authorities will use to help households with the cost of essentials. It will be for the devolved administrations to decide how to allocate their additional Barnett funding.