The freeze on Local Housing Allowance rates that has been in
place since 2016 has today (13 January 2020) been lifted by the
Minister for Welfare Delivery, meaning that rates will rise by
inflation from April.
There are around 1.4 million people in the private rental sector
receiving Local Housing Allowance, and this change will provide
an average of around £10 extra a month to affected households in
the private rented sector.
And since 2011, the government has provided local authorities
with over £1 billion in Discretionary Housing Payments to protect
the most vulnerable claimants. An additional £40 million was also
made available for next year’s Discretionary Housing Payment fund
to help affordability in the private rented sector.
Minister for Welfare Delivery, , said:
This government is levelling up opportunity across the UK, and
this will be a welcome increase for more than a million people
as we provide more money to help pay for housing.
We are committed to tackling all forms of homelessness - ending
the freeze on housing benefits is just one part of achieving
this. We have announced an additional £263 million to help
councils provide better support to homeless people, and
importantly, prevent people from becoming homeless in the first
place.
We will continue to work with the Ministry for Housing,
Communities and Local Government, and others across government,
to find ways to support the cost of living in the rented
sector.
This announcement follows a commitment to end the benefit freeze
made in November, which means other benefits will also rise by
inflation.
Millions of people on Universal Credit, as well as those on the
old benefits system, will also see their payments rise by
inflation.
What do people need to do to receive the increase?
Payments will increase automatically – they do not have to apply
to receive the extra cash and should see a change in their
housing payments after 1 April 2020.
