"Thank you for contacting me about Housing Benefit and the private rented sector.
The Local Housing Allowance (LHA) determines the maximum financial support available for renters in the private rented sector. It applies to claims for Housing Benefit and the housing element of Universal Credit. The LHA policy is kept under regular review and rates are reviewed annually by the Secretary of State for Work and Pensions.
To support low-income households with increasing rent costs, the Government will raise Local Housing Allowance rates to the 30th percentile of local market rents in April 2024. This will benefit 1.6 million low-income households, who will be around £800 a year better off on average in 2024-25. However, it is worth noting that LHA rates are not intended to meet all rents in all areas. I was pleased with this measure as I had been campaigning the Chancellor for quite some time to increase these rates due to the cost to both Hastings Borough and Rother District Councils in housing people in temporary accommodation because of a lack of social and affordable housing. Whilst this has now been increased to cover the lower 30% of rents nationwide it does not mean that the local authorities should rein in their efforts in ensuring that the right homes are built in the right places and I encourage both local authorities to plan for the housing that is needed locally.
While three-quarters of private renters have no difficulties in keeping up with their rent, I understand that affordability may be an issue for some and that they may require additional support. Discretionary Housing Payments (DHPs) are available to those entitled to Housing Benefit or the Housing element of Universal Credit who face a shortfall in meeting their housing costs. Since 2011, the Government has provided around £1.6 billion in DHPs to local authorities.
I also welcome the Chancellor’s announcement that the Government is providing an additional £500 million of funding to enable the extension of the Household Support Fund in England to September 2024, bringing the total funding to £3 billion since October 2021. As a reminder, the Government provided £1 billion of extra funding in the 2022 Autumn Statement by extending the Household Support Fund for another year, bringing the total of the fund to £2.5 billion in 2023. By then £7,793,568 had been allocated across East Sussex to support vulnerable people and families with the cost of daily essentials, including energy bills and food.
Yours sincerely,
Sally-Ann Hart MP. “