Local Housing Allowance

(asked on 17th April 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if his Department will make an assessment on the potential merits of removing the freeze on the local housing allowance rates in the context of the level of inflation and affordability of renting in city areas.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 25th April 2023

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 and the merits of any potential changes prior to a fiscal event. Any assessment made is always within the context of the economic landscape at the time and considers demographic groups or areas which may be particularly impacted.

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. Since then, we have maintained the increase 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 require additional support, Discretionary Housing Payments (DHPs) are available from local authorities. DHPs can be paid to those in receipt of qualifying housing support who face a shortfall in meeting their rental housing costs.

These payments are entirely at the discretion of the Local Authority and since 2011 the Government has provided nearly £1.6 billion to local authorities for households who need additional support with their housing costs.

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