Work and Pensions
Stephen Timms (East Ham, Labour)
To ask the Secretary of State for Work and Pensions whether he plans to take account of rent affordability in areas in determining which areas to exempt from the cap of one per cent on the uprating of local housing allowance.
Steve Webb (Minister of State (Pensions), Work and Pensions; Thornbury and Yate, Liberal Democrat)
The Government has set aside £140 million over two years to help people most affected by the 1% cap on local housing allowance uprating in 2014-15 and 2015-16.
Our intention is that this funding will be used to increase the local housing allowance rates in areas where rent increases are causing a shortage of affordable accommodation. We do not know yet which areas will see the largest problems with affordability but will consider the available evidence, including rental data collected by the rent officer to decide how it is targeted.
We are currently considering the detailed policy design and will make further information available in due course.