Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 21
21
Rejected
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 summary AI-generated
The government justified its decision regarding Local Housing Allowance rates by outlining factors considered for 2025/26, reiterating its broader housing support spending, and highlighting other funding for homelessness prevention, implicitly rejecting the committee's concern about the re-freeze.
Government Response
The government responded to this report on 16 June 2025. No passage in that response could be matched to this conclusion. Read the response document ↗