Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment she has made of the potential effect of the reduction of discretionary housing payment funding on levels of rent arrears in Wales.

We consider the allocation of Discretionary Housing Payments to individual local authorities each year and monitor evolving demand and trends.

For 2020-21 the Government provided an additional £40 million to help tackle affordability pressures in the private rented sector taking the total allocation for local authorities in England and Wales up from £140m to £180 million.

This year in recognition of the significant investment in April 2020 of nearly £1billion in Local Housing Allowance, Discretionary Housing Payments funding to help support vulnerable people with housing costs is set at £140m for local authorities in England and Wales. In addition to the central government contribution, English and Welsh local authorities are able to top up Discretionary Housing Payment funding up to a maximum of two and a half times this figure using their own funds.

The investment in LHA rates provided 1.5 million claimants with an average £600 more housing support last year than they would otherwise receive. We have maintained LHA rates at the same cash level for 2021/22, rather than reverting back to previous rates.