Local Housing Allowance
The question
To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of increasing local housing allowance rates on levels of homelessness in (a) rural and (b) other areas.
Answered by Sir Stephen Timms
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. We do however work closely with other departments, including MHCLG, to ensure the impacts of Local Housing Allowance (LHA) on homelessness are considered.
The Secretary of State considers LHA rates annually at Autumn Budget. Decisions on LHA will be taken in the round considering a range of factors such as rental data, the Government’s missions, its goals on housing and the challenging fiscal context.
LHA rates were restored to the 30th percentile of local market rents from April 2024 for one year, costing £1.2bn in 2024/25 and £7bn over 5 years.
Discretionary Housing Payments (DHPs) can be paid by local authorities to those entitled to Housing Benefit or the housing element of Universal Credit who face a shortfall in meeting their housing costs. DHPs include a ring-fenced pot for the most rural areas
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