Government claim LHA rates will remain under review despite freeze

The government claim it will keep Local Housing Allowance (LHA) rates under review.

In answer to a written question, Homelessness Minister Alison McGovern says the government is working to support private renters with their rent.

The news comes after the government froze LHA rates for the second year in a row in the Autumn Budget.

LHA haven’t kept pace with rent prices

LHA determines how much rent support claimants can receive, and since the rates were frozen in April, they haven’t kept pace with rent prices.

Labour MP Jim Machon asked the government in a written question, “What assessment has the government made of levels of homelessness relative to (a) levels of affordability of rented accommodation and (b) rates of local housing allowance.”

According to government data, almost 1.7 million private rented households across the country were receiving housing cost support as of August this year, and 53% of these households faced a gap between their housing benefit payments and their monthly rent.

Keep LHA rates under review

In response, Ms McGovern said: “A lack of affordable housing is a key driver of homelessness. This government plan to deliver a decade of renewal for social and affordable housing, including with £39 billion funding for the Social and Affordable Homes Programme.

“We recognise some private renters need support with their rent. That is why we will work across government to keep Local Housing Allowance rates under review in order to deliver on the government’s priorities, including maintaining the long-term fiscal sustainability of the welfare system.”

The government have also pledged to prevent homelessness by the end of this Parliament through its new homelessness strategy.

This includes halving the number of long-term rough sleepers, ending the unlawful use of B&Bs for families, and preventing more households from becoming homeless in the first place.