Thank you for reaching out to me regarding Local Housing Allowance (LHA) and Housing Benefits. I understand how difficult it can be to find affordable housing.
The Valuation Office Agency Rent Officers determine LHA rates for private landlords, which are used to calculate Housing Benefits and the Housing element of Universal Credit (UC) for tenants. LHA rates are based on the private market rents paid by tenants in the area in which they are expected to live. You can check these rates via the LHA Direct website.
The Government has invested around £1 billion to increase LHA rates in April 2020 to the 30th percentile of local market rents, providing 1.5 million households with an additional £600 in housing support per year. This increase has been maintained in cash terms for 2022/23 and 2023/24. It is important to note that LHA rates are not intended to meet all rents in all areas, and if claimants require extra support, they can approach their Local Authority for a Discretionary Housing Payment (DHP). The Government has provided nearly £1.6 billion in DHP funding to local authorities since 2011.
The benefit cap is in place to protect families from experiencing a sudden change in their circumstances, with exemptions in place for the most vulnerable claimants who are entitled to disability benefits and carer benefits. If you lose your job, you may qualify for a grace period from the cap for 39 weeks. The national cap is currently set at £20,000, rising to £23,000 in London, and will increase by 10.1% in 2023 in line with inflation.
Housing Benefit is being replaced with Universal Credit, and you may only make a new claim for Housing Benefit if you have reached State Pension age or are in supported, sheltered, or temporary housing. If you are over State Pension age and live with your partner, you can make a new claim for Housing Benefit under certain conditions. If you were already receiving Housing Benefit before 15 May 2019 and had reached State Pension age, your existing claim will not be affected by the roll-out of Universal Credit.
We understand that affordability can be an issue for some renters, and while three-quarters of private renters have no difficulties in keeping up with their rent, additional support is available. The Government provides DHPs to those entitled to Housing Benefit or the Housing element of Universal Credit who face a shortfall in meeting their housing costs.
In Autumn Statement 2022, the Chancellor announced that the Government will provide £1 billion of extra funding by extending the Household Support Fund for another year, bringing the total of the fund to £2.5 billion. This fund is distributed by local authorities and helps cover the cost of daily essentials, including energy bills and food. If you are in receipt of Housing Benefit but not any other means-tested benefits, I would encourage you to contact your local authority to see what help is available locally through the Household Support Fund.
Thank you again for taking the time to contact me.