Local Housing Allowance
The question
To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the potential impact of Local Housing Allowance levels on (a) Personal Independence Payment claimants, (b) Universal Credit claimants and (c) households placed in temporary accommodation.
Answered by Sir Stephen Timms
Local Housing Allowance (LHA) sets the maximum level of support for people living in the private rented sector and is administered through Universal Credit Housing Element or Housing Benefit.
The current LHA rate does not apply to households living in temporary accommodation. Their housing costs are covered in full by their local authority, and DWP then subsidises the local authority through Housing Benefit.
At Autumn Budget, the Secretary of State reviewed LHA and decided not to increase rates for 2026/27. A range of factors were considered, including cross-government impacts on homelessness and impacts on protected characteristics, such as disability, in line with equality duties.
This Government has taken important steps to support people with their living costs such as the Universal Credit Act, which legislates to rebalance Universal Credit by bringing in, for the first time ever, a sustained above inflation increase to the standard allowance for all claimants.
Renters facing a shortfall in meeting their housing costs can apply for discretionary housing support from local authorities.
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