- New Local Housing Allowance rates to come into force in April
as legislation being laid in parliament.
- £7 billion investment over the next five years means 1.6
million private renters on Universal Credit or Housing Benefit
will be around £800 better off a year.
- Comes as National Insurance cut comes into effect – meaning
households with two average earners will save nearly £1,000 per
year.
Around 1.6 million private renters across Great Britain are set
to receive a substantial boost to their housing support in April,
as the Government lays legislation to increase Local Housing
Allowance (LHA). In Wales, around 82,500 households are set to
benefit from the boost.
The boost will benefit some of the poorest families on either
Universal Credit or Housing Benefit who will gain around £800 a
year.
The support worth over £7 billion over the next five years comes
as the government publishes the proposed LHA rates for 2024/25,
with people living in the most expensive areas set to see the
biggest boost.
Subject to the benefits cap, eligible renters of:
- Four bed in the Cardiff Broad Rental Market Area could get up
to £1,300 a month.
- Three bed in the Monmouthshire Broad Rental Market Area could
get up to £795 a month.
- Two bed in the Merthyr & Cynon Broad Rental Market Area
could get up to £500 a month.
The increase to the LHA has been welcomed by many housing and
homelessness organisations and is part of the Government’s £104
billion cost of living support package – worth an average £3,700
per household. This also includes raising benefits by 6.7%, the
state pension by 8.5%, and £300 cost of living payments, with
over 7 million households receiving the latest payment and
another payment coming in Spring.
This additional support comes as 27 million people are set to get
a significant tax cut as the main rate of employee National
Insurance will be cut from 12% to 10%. This reduces National
Insurance by more than 15% in total, saving £450 this year for
the average salaried worker on £35,400.
Work and Pensions Secretary said:
Housing costs are the number one expense for families. This
£7 billion boost to Local Housing Allowance over the next five
years, along with our landmark Back to Work reforms, reflects our
fair approach to welfare – helping people into employment while
protecting the most vulnerable with unprecedented cost of living
support.”
Minister for Disabled People, Health and Work said:
Keeping inflation down and supporting people to stay and progress
in work is the best way we can bolster families’ finances and
help them progress, but we know some are still struggling which
is why we are providing this important extra
help.
This key boost to our housing support will see average renters
around £800 better off. It is just one crucial part of our £104
billion package to help the most vulnerable which also includes
an increase to benefits in line with inflation and our latest
series of cost of living payments.”
Secretary of State for Wales, David TC Davies said:
I’m pleased this extra support will benefit tens of thousands of
households across Wales, which comes on top of the already
substantial support that the UK Government has already provided
over recent months to support people with the cost of
living.
At a time when many people are concerned about paying the bills,
the UK Government continues to focus on helping the most
vulnerable in all parts of Wales”.
Crisis Chief Executive Matt Downie said:
It cannot be understated just how vital this investment in
housing benefit will be in helping to both prevent and end
homelessness.
In recent years, people receiving housing benefit have found it
increasingly difficult to afford the soaring cost of rents.
Giving housing benefit this crucial boost will make a real
difference to people across Great Britain and will relieve some
of the pressure facing people on the lowest
incomes.
We hope this investment will be maintained for the long term, so
we can continue with our collective mission to end homelessness
for good.”
The investment comes on top of the £30 billion support the
government is providing over 2023/24 on housing support.
Minister for Levelling Up said:
This funding boost is just one part of how we’re supporting
people in the private rented sector with the cost of
living.
We have already invested £30 billion in housing support, along
with Discretionary Housing Payments which provide an added safety
net for anyone struggling to meet their
rent.
We are taking the long term decisions needed for a better private
rented sector, through our Renters Reform Bill, giving tenants
security and supporting good landlords.”
The Local Housing Allowance determines the maximum housing
support for private renters. It ensures that claimants in the
same area with similar situations are entitled to the same
maximum support regardless of the rent they pay. The level of
support is based on the area where the person lives and the size
of their household.
