Local Housing Allowance

(asked on 20th November 2023) - View Source

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 impact of trends in rental costs on the ability of people eligible for the Local Housing Allowance to afford housing.


Answered by
Mims Davies Portrait
Mims Davies
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 27th November 2023

The Secretary of State for Work and Pensions reviews Local Housing Allowance annually and in doing so considers the impact of rental costs against the wider fiscal context.

In 2021/22 the Government spent almost £30 billion to support renters in both the private and social rented sector. This is forecast to rise to £31 billion in 2023/24.

As announced in the Autumn Statement, from April 2024 the Government will be investing £1.2 billion to increase Local Housing Allowance (LHA) rates to the 30th percentile of local market rents. This significant investment will ensure 1.6 million private renters in receipt of Housing Benefit or Universal Credit will gain on average, nearly £800 per year in additional help towards their rental costs in 2024/25.

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 £1.7 billion in DHP funding to local authorities.

Overall, the Government is providing total support of over £104 billion from 2022/23 to 2024/25 to help households and individuals with cost of living pressures.

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