Commons Sense

House of Commons · Westminster Hall

Local Housing Allowance

15 March 2023 · 6 other contributors · 8,702 words

Opened by Hywel Williams PC Arfon

Responding minister: Mims Davies

HousingBenefits & Welfare

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

Read the full transcript on Parliament.uk

At a glance

Hywel Williams raised concerns about local housing allowance in Westminster Hall. A government minister responded.

Key points

  • Hywel Williams is concerned about the growing gap between actual rents and Local Housing Allowance rates in Wales.
  • Only six out of twenty-two local authorities in Wales had properties advertised at or below LHA rates last month.
  • Williams asks the Minister to assess the impact of not uprating LHA and to consider reviewing rental market area boundaries in Wales.

Key requests to Government

Williams asks the Minister to assess the impact of not uprating LHA, consider how unfreezing LHA could save local authorities money by enabling sustainable tenancies, and review broad rental market area boundaries in Wales. He also calls for policy changes that can make housing more affordable, such as devolving LHA administration to Wales.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Hywel Williams PC Arfon

Hywel Williams is concerned about the growing gap between actual rents and Local Housing Allowance (LHA) rates, leading to a shortage of available properties for those relying on housing benefits. He cites statistics showing that in Wales, only six out of twenty-two local authorities had any properties advertised at or below LHA rates last month, with Gwynedd having 10 properties out of 187 available, representing just 5.3%. This situation is exacerbated by the freezing of LHA rates since November 2020 and a lack of impact assessment from the government on this decision. He notes that rising rents and insufficient housing support are pushing people into poor quality homes or homelessness.

Other contributors (6)
  • Christina Rees Lab Neath

    Wales faces a housing crisis due to the shortage of affordable properties, leaving many low-income households at risk of financial hardship or homelessness. The Local Housing Allowance (LHA) does not cover full rent costs in many areas, with Neath having no advertised rental property covered by LHA rates and significant gaps between market rents and LHA rates. This situation forces individuals to choose between paying rent and basic necessities, leading to potential homelessness and exacerbating economic issues.

  • David Linden Lab Glasgow East

    The SNP is concerned about the maintenance of local housing allowance rates at cash terms, which places additional pressure on tenants and discretionary housing payment funding. They highlight the Scottish Government's £350 million spent mitigating the bedroom tax in Scotland as an example of the strain devolution faces due to poor welfare policy made in London. Asked the Minister to confirm whether there will be a change in culture regarding transparency and publication of decision-making processes within the DWP after reading part of the Government's White Paper on health and disability.

  • Jim Shannon DUP Strangford

    Jim Shannon highlighted the difficulties faced by private renters in Northern Ireland due to the local housing allowance shortfall, noting that almost 30,000 claimants are affected. He cited research showing that over half of low-income renters across Great Britain reported rent increases and provided examples from his constituency where rental costs significantly outstrip income, causing hardships for families.

  • Karen Buck Lab Battersea

    Ms Karen Buck highlighted the impact of rent unaffordability driven by high inflation, noting that over 800,000 households face a shortfall between their rent and local housing allowance. She emphasized that since 2010, homelessness has soared with an 83% increase in children living in temporary accommodation.

  • Kerry McCarthy Lab Bristol East

    The hon. Gentleman mentions Bristol, where this is a massive issue. A recent inquiry by the Bureau for Investigative Journalism and The Bristol Cable found that there were virtually no properties with LHA rates available in Bristol.

  • Stephen Timms Lab East Ham

    The Joseph Rowntree Foundation's research shows that the cost of basic essentials for a single person is £120 a week, which is £35 more than universal credit starting next month. Due to rent increases and LHA freezes since 2020, 57% of private rented households receiving housing support had a shortfall by August last year. The Work and Pensions Committee reported that the gap between rising rents and support through LHA is increasing homelessness risks. Mr Stephen Timms inquired if there had been an assessment of potential savings in temporary accommodation costs if the LHA was raised to the 30th percentile.

Government Response

Mims Davies

I thank the hon. Member for Arfon (Hywel Williams) for calling this debate on the local housing allowance, which provides housing support for universal credit and housing benefit claimants in the private rented sector... I take all the points from hon. Members from all around our wonderful nations today, and I am sorry I cannot tell them any more than that this issue is a very strong focus for me, and that we will continue, I hope, to work together for all our communities.

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