DWP announce Local Housing Allowance increase in line with CPI

by Nick Thompson

13:59 PM, 13th January 2020
About 10 months ago

DWP announce Local Housing Allowance increase in line with CPI

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DWP announce Local Housing Allowance increase in line with CPI

The Department for Work and Pensions has issued a statement by, Will Quince, Parliamentary Under Secretary of State for Welfare Delivery. Click here

This indicates that the freeze on Local Housing Allowance (LHA) rates has ended and that they will be increased in line with the Consumer Price Index (CPI).

Quince said: “I am announcing that from April 2020 Local Housing Allowance (LHA) rates will be increased in line with the Consumer Price Index (CPI), ending the freeze to the Local Housing Allowance and delivering on the manifesto commitment to end the benefit freeze.

“The Rent Officers Orders for Housing Benefit and Universal Credit, which provide for the increase, will be laid in the House later today and a corresponding provision will implement the changes for Northern Ireland

“This increase will mean the majority of people in receipt of housing support in the Private Rented Sector will see their housing support increase, on average benefiting by around £10 per month.

“This Government continues to spend around £95 billion a year on working age benefits, including around £23 billion to help people with their housing costs.

“Ending the freeze to LHA rates ensures we are continuing to support the most vulnerable in society. And, as announced at the Spending Round in September 2019 there will be an additional £40 million in Discretionary Housing Payments for 2020/21, to help affordability in the private rented sector.

“My Department will continue to work with colleagues across government on housing, including working closely with MHCLG to find ways to reduce homelessness and meet the cost of living in rented accommodation through good housing supply and a welfare system that supports the vulnerable.”


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Comments

David Lawrenson

11:31 AM, 14th January 2020
About 10 months ago

Ah, so this is a piece of good news.

The past freeze on this benefit, is actually a form of rent control in miniature.

The long decoupling of the LHA/ HB rate from local market rent levels just led to landlords exiting this end of the market in droves and putting up an effective "No Housing Benefit" sign.

So desperate is the problem that now, my local council, Bexley, like others no doubt, is paying up to £8,000 to house people from off their homeless register.

Effectively the freezing of rates is a form of rent control, which is why I like to tell people that they don't need to look to other cities or past times to show "Rent Control Charlies" that rent control does not work and always leads to a lessening of rental accommodation and a reduced quality of accommodation, you can just point to the effect right now that freezing housing benefit rates has had.

https://www.lettingfocus.com/blogs/category/rent-controls/

David Lawrenson
http://www.LettingFocus.com
Private Rented Sector Advice

Mick Roberts

9:21 AM, 22nd January 2020
About 9 months ago

So we've put your rent up by approx £100 since 2015, due to clause 24 tax we bought in.
And also due to Selective Licensing we keep giving councils permission to inflict on Landlords & tenants without us checking the Councils are actually making the houses better & without us doing the Maths that says What????? £890 for a License that the Landlord has to wait two years for & the tenants house don't even get inspected?
But cause of the above, we now gonna' give u 2% increase which by the way also falls way behind inflation for last 5 years.
So u £100+ down. But now only £90 down. Tally Ho.

we are continuing to support the most vulnerable in society?
They really are on another planet.

My Department will continue to work with colleagues across government on housing, including working closely with MHCLG to find ways to reduce homelessness and meet the cost of living in rented accommodation through good housing supply and a welfare system that supports the vulnerable.
What a load of plonkers. Come work with me & Luke & Rob Mellors & Monty etc. We could sole 50% of homeless in 27 seconds. FREE. In fact reducing the tax bill at same time.

Yes good point David, this form of rent control has/is showing Rent control doesn't work.

Old Mrs Landlord

10:50 AM, 22nd January 2020
About 9 months ago

It would be interesting to hear from landlords in other parts of the country where LHA rates have actually gone down over the last decade. We have tenants whose LHA is lower than it was when they moved in nearly twelve years ago. They will get about £6 more a month - a quarter the increase in the service charges for their flat during that time, not to mention all the other increased charges, insurance for instance, we are paying. That's before we even look at the difference between current rents and what they pay. This couple have permanent health problems and would not find anywhere else to rent privately if we gave them notice. The government want us to treat providing homes as a business and taxation and regulation to that end increase our running costs, but if we had made a rational business decision for these tenants they would have been homeless years ago. We all want to discourage healthy working-age people from sponging off the state (or rather those who work and pay taxes) but the austerity measures seem to have been disproportionately borne by those who, often for no fault of their own, were already struggling. So yes, this is good news as David Lawrenson says, but for some of us it's a drop in the ocean.

Mick Roberts

12:28 PM, 22nd January 2020
About 9 months ago

Reply to the comment left by Old Mrs Landlord at 22/01/2020 - 10:50
Yes Nottingham's rates have gone down since 2008. To be fair, the rates in 2008 were very generous, a License to print money some HB staff used to tell me. But I will fully admit, if it's there, I'm gonna' take it if the Thick Govt wish to pay generously. But now they paying way below & tenants are not able to move or secure safe accommodation.

Yes same here, If I thought with my head & not heart, all mine would be homeless now cause of UC & http://www.selectivelicensingtruth.co.uk


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