Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 21
21
Re-freezing Local Housing Allowance rates risks undermining homelessness funding and increasing costs.
Conclusion
We are also concerned that the Government’s decision to re-freeze Local Housing Allowance (LHA) rates from April 2025 will undermine the impact of additional homelessness grant funding. We have seen compelling evidence that this is a false economy. Re-freezing LHA rates is likely to leave many families unable to afford rising private sector rents, placing them at risk of homelessness and relying on temporary accommodation. It is far more expensive for local authorities to support families once they are in temporary accommodation. (Conclusion, Paragraph 88)
Government Response
A response document is linked to this report, dated 16 June 2025. Response attribution to this conclusion has not been verified. Read the response document ↗