Scottish Government: Housing Minister expresses ‘deep concern’ over Local Housing Allowance freeze

Housing Minister Paul McLennan has written to the UK Government calling on them to reverse the recent budget decision to keep rates at 2024-25 levels for the coming year, further widening the gap between Local Housing Allowance rates and real-world rents.

In his letter to the Secretary of State for Work and Pensions, Mr McLennan said:

“Whilst we will continue to do all we can to support households struggling with the impact of the freeze within devolved powers, the UK Government must commit to unfreezing LHA rates. Research from the Resolution Foundation estimates that permanently repegging LHA rates to the 30th percentile of local rents would mean 75,000 fewer children in poverty by the end of the UK Parliament. This is a missed opportunity to help lift many children out of poverty.

“I am therefore calling on you to end the uncertainty and ensure that LHA rates will permanently meet at least the 30^th percentile of local rents in future years. The upcoming Spring Statement is an opportunity to reverse the freeze and deliver adequate support to private sector tenants.

Read the letter in full. 

Background

The Local Housing Allowance determines the maximum financial support available for renters in the private rented sector. Setting rates at the 30^th percentile would make only the lowest 30 per cent of the local market available to tenants who receive the allowance.