Local Housing Allowance 2023-01-23
2023-01-23
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from the real-terms reductions in local housing allowance rates, which have a significant impact on low-income households' ability to afford rent.
What assessment has been made of the impact of real-terms reductions in local housing allowance rates on families?
In 2020, as the right hon. Gentleman knows, the Government boosted the local housing allowance by almost £1 billion, taking it to the 30th percentile of rents. For those where there is a shortfall, the discretionary housing payments arrangements are available. We should all be mindful of the expense of the support for housing, which is running at £30 billion a year, and is projected to rise to £50 billion in 2050.
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Assessment & feedback
The assessment of the impact on families was not directly addressed; instead, emphasis was placed on overall funding increases and discretionary housing payments.
Changing Subject To Overall Housing Expense
Response accuracy
Q2
Partial Answer
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Context
Rightmove reported that London rents increased by over 16% last year, while local housing allowances have been frozen since 2020, creating a significant gap for those relying on such support.
Will Ministers look again in the Budget at the level of local housing allowance for the coming financial year?
The right hon. Gentleman makes a perfectly valid point, but he needs to see this issue in the round. My fellow Ministers have outlined at some length the cost of living support payments that were made available last year and that were announced in the autumn statement and will be available from April onwards. I have already mentioned discretionary housing payments, with £1.6 billion of support since 2011. There is also the household support fund, which gained an extra £1 billion for 2023-24.
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Assessment & feedback
The specific request to review local housing allowance levels was not directly addressed; instead, alternative measures were discussed.
Changing Subject To Cost Of Living Support Payments
Response accuracy