Local Housing Allowance: Inflation

Department for Work and Pensions written question – answered on 28th November 2022.

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Photo of Stephen Farry Stephen Farry Alliance, North Down

To ask the Secretary of State for Work and Pensions, whether he plans to increase the Local Housing Allowance from April 2023 to reflect the rate of inflation.

Photo of Mims Davies Mims Davies The Parliamentary Under-Secretary of State for Work and Pensions

In April 2020 Local Housing Allowance (LHA) rates were raised to the 30th percentile, a significant investment of almost £1 billion, we have maintained the rates in cash terms since then ensuring claimants continue to benefit from the significant increase.

On the 17 November the Secretary of State for Work and Pensions confirmed in his Written Ministerial Statement that LHA rates will be maintained at those increased levels for 2023-24.

For those who need additional support with housing costs, Discretionary Housing Payments (DHP) are available from local authorities. Since 2011 we have provided almost £1.5 billion in DHPs.

To ensure stability and certainty for households, in the Autumn Statement the Government has announced £26bn in cost of living support for 2023/24. This includes Cost of Living Payments for the most vulnerable. In 2023/24, households on eligible means-tested benefits will get up to a further £900 in Cost of Living Payments. A £300 payment will be made to pensioner households and individuals in receipt of eligible disability benefits will receive a £150 payment. Also included is the amended Energy Price Guarantee which will save the average UK household £500 in 2023-24 and raising the benefit cap by 10.1% in line with inflation.

For those who require extra support, the Government is providing an additional £1 billion of funding, including Barnett impact, to enable the extension of the Household Support Fund in England in the next financial year. This is on top of what we have already provided since October 2021, bringing total funding to £2.5 billion. It will be for the devolved administrations to decide how to allocate their additional Barnett funding.

In addition, we are uprating benefits for working age households and disabled people, as well as the basic and new State Pensions, all by 10.1%.

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