Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Not Addressed
Freezing Local Housing Allowance rates amidst rising rents increases homelessness and evictions
Recommendation
It its written submission, Shelter made the case for permanently linking LHA rates to the real cost of renting. It suggested that freezing the LHA rate at a time of record rent increases would trap families in homelessness and 25 Qq 39-40, 42-43 26 C&AG’s Report, para 1.10 (footnote 9) 27 C&AG’s Report, para 1.10 28 Q 32 29 Qq 33, 36, 73 14 make it impossible for local authorities to prevent or relieve homelessness by finding private rented homes which people on low incomes can afford.30 Reapit made a similar point, citing its 2023 report which found that almost 70% of property professionals issued Section 21 eviction notices due to rent arrears, highlighting the critical link between the ability of a tenant to pay the rent and the risk of eviction.31
Government Response Summary
The government states it agrees with the recommendation but merely provided a justification to the Committee for the current levels of Local Housing Allowance, rather than committing to link LHA rates to the real cost of renting as implicitly recommended.
Government Response
Not Addressed
HM Government
Not Addressed
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.