Commons Sense

House of Commons · Ministers' Questions

Housing Allowance

Monday 11 May 2020 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 0 Not answered 0

Key points

  • The local housing allowance rates were increased to the 30th percentile of local rents in response to the COVID-19 outbreak.
  • This increase in local housing allowance rates cost nearly 1 billion.
  • Universal credit and working tax credits were increased by more than 1,000 a year to support vulnerable families.

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Questions & Answers

Q1 Navendu Mishra Lab Bolton South East
Housing Benefits & Welfare
Context

Inquiries about the adequacy and effectiveness of local housing allowances amid the economic pressures brought by the pandemic.

Question

What assessment has been made regarding the levels of local housing allowance during the covid-19 outbreak?

Answer from Will Quince (Minister for Families and Social Mobility)

In April, in response to COVID-19, we introduced increased local housing allowance rates for housing benefit and universal credit claimants to the 30th percentile of local rents, providing additional support for private renters. This significant investment cost almost £1 billion and ensures that more than 1 million households will see an increase, on average, of £600 per year.

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Q2 Navendu Mishra Lab Bolton South East
Housing Benefits & Welfare
Context

Concerns about families at risk of homelessness due to lack of cheaper accommodation options.

Question

Thousands of families in Britain are at risk of being pushed into homelessness as a result of this crisis. What urgent steps is the Minister taking to ensure that the most vulnerable will not lose their homes as a result of the covid-19 outbreak, at a time when there is no option to find cheaper accommodation to move to?

Answer from Will Quince (Minister for Families and Social Mobility)

Over and above the measures introduced by the Ministry of Housing, Communities and Local Government, we have increased universal credit and working tax credits by more than £1,000 a year, and increased the local housing allowance rates. In this respect, in southern Greater Manchester, which covers Stockport, the two-bedroom LHA has been increased by £76 a month—£900 a year—and the four-bedroom rate in the hon. Gentleman's constituency has increased by over £200 a month. That extra £6.5 billion going into our welfare system is supporting the most vulnerable and disadvantaged in our society.

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