Local Housing Allowance: Wales

Department for Work and Pensions written question – answered at on 4 November 2025.

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Photo of Ben Lake Ben Lake Plaid Cymru, Ceredigion Preseli

To ask the Secretary of State for Work and Pensions, what recent assessment he has made of the potential impact of the freeze on local housing allowance on levels of homelessness in Wales.

Photo of Stephen Timms Stephen Timms The Minister of State, Department for Work and Pensions

The causes of homelessness are multi-faceted and often complex; they interact dynamically making it very difficult to isolate the relative importance of individual factors. Responsibility for housing and homelessness is devolved to the Welsh Government, while social security is reserved to the UK Government.

In April 2024, Local Housing Allowance (LHA) was increased to the 30th percentile of local market rents, including across Wales, costing an additional £1.2bn in 2024/25 and approximately £7bn over 5 years.

The Secretary of State reviews LHA rates annually in the Autumn, this includes consideration of latest rental data, stakeholder evidence from organisations across GB, including in Wales, homelessness levels and the current challenging fiscal environment. Future funding decisions will be taken in the context of Government priorities.

For those who need further support, Discretionary Housing Payments (DHPs) are available from local authorities.

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