Commons Sense

House of Commons · Ministers' Questions

Local Housing Allowance

Monday 19 June 2023 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • Local housing allowance rates were increased by 1 billion in 2020.
  • Private rental costs in Wales rose by 4.2% in the year to February 2023.
  • Benefits for working age and disability recipients have been raised in line with inflation.

Topics (select to filter)

Questions & Answers

Q1 Dan Carden Lab Liverpool Walton
Housing Benefits & Welfare
Context

The local housing allowance policy is under scrutiny due to rising rental costs in Liverpool Walton, the most deprived constituency in England. The annual gap between LHA and rent for 30% of properties exceeds £1,500.

Question

I listened carefully to the Minister's answer. Liverpool, Walton is the most deprived constituency in the whole of England, yet the annual gap between local housing allowance and the cheapest 30% of properties now stands at over £1,500. My casework contains more and more heartbreaking stories of families unable to afford the cost of their housing. People need their Government to act on rising private rents and the lack of decent homes: to raise the allowances and take control on rents in the short term, but to increase the supply of housing in the long term. What is this Government's plan?

Answer from Mims Davies

Mr Speaker, may I just confirm that the LHA rates were boosted by a £1 billion funding increase in 2020? I recognise that rents are increasing, and it is a challenging fiscal environment. Benefits for those of working age or with disability benefits have been increased in line with inflation for 2023-24. The benefit cap has also increased. However, the Department for Levelling Up, Housing and Communities is focused on addressing these challenges.

Partly answered

Not addressed: The specific ask about short-term measures like rent control and long-term solutions such as increasing housing supply was not addressed with concrete plans or actions.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Gerald Jones Lab Merthyr Tydfil and Aberdare
Taxation Housing
Context

Private rental costs in Wales increased by 4.2% from March 2022 to February 2023, the highest annual percentage since the Tories came to power.

Question

Private rental costs in Wales increased by 4.2% in the year to February 2023, the highest annual percentage since the Tories came to power. The Government have accepted the need to uplift benefits in line with inflation, but they have completely failed to accept that the same principles should apply to the local housing allowance. Given that rent is the largest outgoing for a typical family budget, can I ask the Minister why?

Answer from Mims Davies

There is no one-size-fits-all solution. This is a multi-layered and multi-textured challenge, and I am focused on addressing it by engaging with the Department for Levelling Up, Housing and Communities and consulting with stakeholders. LHA rates are not intended to meet all rents in expensive areas.

Partly answered

Not addressed: The specific ask about why local housing allowance should not be uplifted was not directly addressed with a concrete explanation.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Dan Carden Lab Liverpool Walton
Housing Benefits & Welfare
Context

The local housing allowance is under scrutiny due to rising rental costs and the gap between LHA and rent in Liverpool Walton.

Question

I listened carefully to the Minister's answer. Liverpool, Walton is the most deprived constituency in the whole of England, yet the annual gap between local housing allowance and the cheapest 30% of properties now stands at over £1,500. My casework contains more and more heartbreaking stories of families unable to afford the cost of their housing. People need their Government to act on rising private rents and the lack of decent homes: to raise the allowances and take control on rents in the short term, but to increase the supply of housing in the long term. What is this Government's plan?

Answer from Mims Davies

Mr Speaker, may I just confirm that the LHA rates were boosted by a £1 billion funding increase in 2020? I recognise that rents are increasing, and it is a challenging fiscal environment. Benefits for those of working age or with disability benefits have been increased in line with inflation for 2023-24. The benefit cap has also increased. However, the Department for Levelling Up, Housing and Communities is focused on addressing these challenges.

Partly answered

Not addressed: The specific ask about short-term measures like rent control and long-term solutions such as increasing housing supply was not addressed with concrete plans or actions.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q4 Karen Buck Lab
Housing Benefits & Welfare
Context

The government's mortgage crisis is expected to impact renters, especially those in the private rented sector who are renting from landlords with buy-to-let mortgages. Already, many children in privately rented homes with parents on universal credit are in absolute poverty.

Question

The Government's mortgage crisis is about to be the next blow to hit renters, because so many are renting from those with buy-to-let mortgages. Already, 49%—almost half—of children in privately rented homes with parents receiving universal credit are in absolute poverty, to take the Government's preferred measure, and as we know, many of those parents work. Since then, rents across the country have risen by 9.5%, but the local housing allowance has risen by 0%. What does the Minister think is going to happen to low-income families with children in the private rented sector this year?

Answer from Mims Davies

Those struggling with mortgage payments should engage with their lenders. We have abolished the zero earnings rule for claimants on universal credit. £25 million was paid out in loans to 12,000 households in 2021-22 to support low-income homeowners. Over 200,000 low-income homeowners have been supported.

Partly answered

Not addressed: The specific ask about the impact on low-income families with children was not directly addressed; instead, information about mortgage support for homeowners was provided.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)