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 maintaining Local Housing Allowance at its 2024/25 level in the current financial year on levels of homelessness among Universal Credit claimants.
Answered by Sir Stephen Timms
At Autumn Budget 2025, the Secretary of State for Work and Pensions reviewed LHA and decided to maintain rates at current levels for 2026/27. Rent levels across Great Britian were considered alongside other factors, including wider benefit priorities, support currently available and the challenging fiscal context.
The causes of homelessness are multi-faceted and often complex. They interact dynamically, making it difficult to isolate the relative importance of individual factors. DWP continues to work closely with MHCLG on interactions with homelessness, and MHCLG published the National Plan to End Homelessness in December.
The new multi-year Crisis and Resilience Fund (CRF) gives councils more stable funding to support households in financial difficulty and to prevent crises before they occur. Renters facing a shortfall can apply for a CRF Housing Payment in England.
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