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Local Housing Allowance

Question for Department for Work and Pensions

UIN 70221, tabled on 5 November 2021

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 4 November 2021 to Question 65363, on Local Housing Allowance, whether her Department has plans to introduce a Targeted Affordability Fund to mitigate the impact of maintaining Local Housing Allowance for 2022-23 at the elevated cash rates agreed for 2020-21.

Answered on

16 November 2021

Since 2011, we have provided over £1 billion in Discretionary Housing Payments to local authorities for households who need extra help with their housing costs.

The decision on Local Housing Allowance rates for 2022/23 will be confirmed at the uprating review in due course. There are no plans to introduce targeted affordability funding.

The baseline for costings is that rates will be maintained at the elevated cash rates agreed for 2020/21, an investment which cost around £1 billion per year. This means maintaining rates in cash terms would not provide any savings for the Department, nor would it reduce any claimant’s benefit entitlement.