Local Housing Allowance

(asked on 14th April 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will take steps to increase Local Housing Allowance in line with increases in rental prices.


Answered by
Mims Davies Portrait
Mims Davies
Shadow Minister (Women)
This question was answered on 24th April 2023

The Local Housing Allowance (LHA) determines the maximum amount of housing support for those renting in the private rented sector. LHA is not intended to meet all rents in all areas.

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 continues to do so. The Secretary of State (SoS) reviewed LHA rates in his Written Ministerial Statement on 17 November 2022 and a decision was made to maintain rates at their current level. SoS has committed to reviewing rates annually.

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 have been necessary to ensure support is targeted effectively. Overall, the government is providing total support of over £94bn over 2022-23 and 2023- 24 to help households and individuals with the rising cost of living.

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