Housing Secretary Màiri McAllan has called on the UK Government
to reverse the freeze to vital housing support and lift tens of
thousands of children out of poverty across the UK.
Local Housing Allowance has been frozen by the UK Government
for a second year, while the cost of living has continued to
rise.
In response, the Scottish Government has committed to invest up
to £9 million in additional Discretionary Housing Payments to
support families with children affected by the freeze as part of
the Tackling Child Poverty Delivery Plan announced last week,
bringing the total amount to be invested this coming year to £115
million.
This will help support up to an estimated 18,000 households with
children to afford their rents and prevent homelessness.
Ms McAllan said:
“The UK Government's decision to freeze Local Housing Allowance
for a second year is causing significant hardship in our country.
It is forcing families into poverty and driving homelessness.
“The Resolution Foundation has been clear that the right approach
to Local Housing Allowance could lift 75,000 children out of
poverty in the UK. Unforgivably, the UK Government decided to
freeze it for a second year while the cost of living has
continued to spiral.
“Eradicating child poverty is this Government's top priority and
we will not stand by while families are pushed further
into destitution.
“That is why we have taken the decision to mitigate the freeze,
as far as possible, for households with children in
Scotland.
“Scottish Government investment already ensures no one in
Scotland needs to pay the UK Government's Bedroom Tax. Now,
thanks to this investment, the punitive impact of the UK
Government's freeze will be abated for thousands of households
with children.
“We believe everyone should have the opportunity of a safe, warm
and affordable place to call home. This new investment, together
with our other action to tackle the housing emergency, will help
make this a reality.”
Chief Executive of One Parent Families Scotland Satwat Rehman
said:
“As the sole carers and sole earners in their household, single
parents have no second income to fall back on when costs
increase. When housing support is frozen while rents keep rising,
they are forced to make up the difference from money meant for
their children's essentials.
‘'We welcome the Scottish Government's further investment in
Discretionary Housing Payments, which will provide vital support
for families struggling with rent. But discretionary payments can
only go so far.
‘'In the long term, the UK Government must reverse the freeze and
ensure Local Housing Allowance reflects the real cost of renting
so families are not left relying on temporary support just to
keep a roof over their heads.”
Background
Scottish Government analysis estimates that the ongoing freeze to
LHA will adversely impact up to around 45,000 households in
Scotland, including approximately 31,000 children, by the end of
2026-27.
Discretionary Housing Payments already play a central role in
supporting low‑income families with their housing costs,
including those affected by UK Government welfare restrictions
such as the benefit cap.
In 2026‑27, the Scottish Government is making £15.5 million
available to local authorities to mitigate the impacts of the
benefit cap. This includes £7.6 million to support families who
will be impacted by the UK Government's decision to remove the
two‑child limit without making any corresponding change to the
benefit cap.
The Housing Secretary and representatives from One Parent
Families Scotland (OPFS), including its Chief Executive, will be
available for interview at OPFS' Edinburgh office on York Place
at 12:45 Tuesday 17 March. This must be arranged by contacting
fraser.briton@gov.scot /
07785 454 724 by 17:00 today (Monday 16 March).
