Local Housing Allowance

Department for Work and Pensions written question – answered on 12th February 2021.

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Photo of Afzal Khan Afzal Khan Shadow Deputy Leader of the House of Commons

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential merits of increasing the Local Housing Allowance to cover median market rents.

Photo of Afzal Khan Afzal Khan Shadow Deputy Leader of the House of Commons

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential economic effect on renters of increasing the Local Housing allowance in line with median market rents.

Photo of Will Quince Will Quince The Parliamentary Under-Secretary of State for Work and Pensions

There has been no such assessment.

In April 2020 Local Housing Allowance (LHA) rates were increased to the 30th percentile of local market rents. This significant investment of almost £1 billion has provided 1.5 million claimants with around £600 more housing support per year than they would otherwise have received. In 2021/22 all LHA rates will be maintained at their increased level, meaning claimants renting in the private rented sector will continue to benefit from the significant increase in the rates applied this year.

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.

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