Source · Select Committees · Work and Pensions Committee
Recommendation 17
17
Acknowledged
Paragraph: 141
Make a commitment to annually uprate Local Housing Allowance to retain its 30th percentile value.
Recommendation
The evidence is clear that support for housing costs cannot be viewed in isolation from wider support provided through other benefits. When and if claimants experience a shortfall in rent, this can impact other parts of household budgeting and erode income otherwise intended for daily living costs. The Government should make a commitment to uprate annually Local Housing Allowance so that it retains its value at the 30th percentile of rents in a Broad Rental Market Area (BRMA).
Government Response Summary
The government made a vague commitment, stating the Secretary of State has committed to reviewing Local Housing Allowance rates annually, taking into account local rents and the broader fiscal context, but not explicitly committing to annual uprating at the 30th percentile.
Paragraph Reference:
141
Government Response
Acknowledged
HM Government
Acknowledged
The Government understands the importance of stable housing and is taking action to increase access to affordable housing. Increasing the Local Housing Allowance (LHA), in recognition of increasing rents, is a key part of helping those who get housing support. That is why the Secretary of State has committed to reviewing the LHA rates every year, taking into account a range of factors including evidence on local rents and the broader fiscal context.