To ask Her Majesty's Government what assessment they have made of the impact of the decision to freeze the Local Housing Allowance in cash terms on the ability of recipients to cover their rental costs.
29 June 2021
In April 2020 Local Housing Allowance rates were increased to the 30th percentile of local rents. This investment of nearly £1 billion provided 1.5 million claimants with an average £600 more housing support in 2020/21 than they would otherwise have received.
LHA rates have been maintained at the same cash level for 2021/22 rather than reverting to previous rates which were much less generous. This provides a reasonable amount of support and ensures that all claimants who benefitted from the increased levels of housing support will continue to do so.
For those who require additional support with housing costs Discretionary Housing Payments (DHP) are available. Since 2011 we have provided over £1 billion in DHP funding. We have allocated a further £140 million for Discretionary Housing Payments for 2021/22 in England and Wales.