Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
DWP unable to quantify system-wide consequences of increasing Local Housing Allowance rates
Conclusion
We asked DWP what analysis it had done on the extent to which homelessness is impacted by LHA rates not allowing people to afford rents in their area. It explained that the decision, for example, to freeze the LHA rate again for 2025–26 was not taken in isolation. It went on to say that while increasing LHA rates would clearly have given tenants more money to pay their rents, there were other considerations. These included the interaction between LHA rates and other benefits such as universal credit, the household support fund and discretionary housing payments. But, when challenged, DWP could not tell us what the consequences would have been elsewhere in the system if ministers had decided to spend more on the LHA.29
Government Response Summary
The government states the recommendation is implemented and that DWP wrote to the Committee on 21 February 2025 to justify the Local Housing Allowance levels for individuals and local authorities regarding temporary accommodation subsidy.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The Department for Work and Pensions wrote to Committee, on 21 February 2025, setting out its justification for the levels of Local Housing Allowance it has set, both for individuals and for local authorities with regard to the temporary accommodation subsidy.