Local Housing Allowance: Greater London
The question
To ask the Secretary of State for Work and Pensions, what steps she is taking to review the rates of the Local Housing Allowance to reflect housing costs in inner London boroughs.
Answered by Sir Stephen Timms
The decision at Autumn Budget to maintain Local Housing Allowance (LHA) rates at current levels for 2025/26 considered a range of factors such as rental data,the Government’s missions and wider fiscal context.
LHA rates were last increased in April 2024 at a cost of £7bn over 5 years. The national maximum caps, which apply in London, were also increased. These caps protect taxpayer costs for exceptionally high rental prices.
Discretionary Housing Payments (DHPs) are available from local authorities for those who face a shortfall in meeting their housing costs and need further support.
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