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Local Housing Allowance

Treasury written question – answered on 9th September 2019.

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Photo of Frank Field Frank Field Chair, Work and Pensions Committee

To ask the Chancellor of the Exchequer, if he will reinstate local housing allowance rates to the 30th percentile.

Photo of Rishi Sunak Rishi Sunak The Chief Secretary to the Treasury

The Government took the difficult decision to freeze LHA rates for 4 years from 2016-17 as part of efforts to bring welfare spending under control.

The Government recognises that the impact of the freeze will differ across the country, and has recycled 50% of the savings from the LHA freeze to increase LHA rates in areas where rental growth has been strongest.

In addition, as part of the 2019 Spending Round, the Chancellor announced an additional £40m in funding for Discretionary Housing Payments (DHP) in 2020-21 to help Local Authorities protect the most vulnerable claimants.

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