DWP said to 'get a handle' on silent housing benefit cut affecting 844,000 Britons
Local Housing Allowance (LHA) - the Universal Credit amount people receive to cover private rent - has been frozen since April 2020. And the page 66 of a fall Statement document confirmed to be frozen again until 2024
The local housing allowance has been frozen since April 2020 (
Image: Bloomberg via Getty Images)
Tory ministers have been told to 'get a handle' on a slippery benefit cut that will make 'more and more families homeless'.
Labour MPs today slammed the decision to freeze housing benefit for the third year running, despite inflation hitting 11.1%.
'Local Housing Allowance' (LHA), the Universal Credit amount people receive to cover private rent, has been increased in 2020 to cover the lowest 30% of housing in each area.< /p>
But it has been frozen in terms of cash since - and will now be frozen for another year until April 2024.
The latest freeze was confirmed in two lines of text on page 66 of a 'Costs of Politics' paper released alongside last month's Fall Statement.
Work and Pensions Secretary Mel Stride confirmed the freeze today, saying he won't be reviewing the LHA until 'this time next year'.
He also flagged that it could be frozen for even longer, saying: "I think it's worth bearing in mind that we're currently spending £30billion a year on housing benefit.
>"And that figure is expected to rise to around £50 billion by 2050, so there are cost considerations."
The freeze means housing allowances are reduced in real terms as rents soar, despite other allowances rising 10.1% in April.
The average monthly rent for a three-bed house in the North West has fallen from £690 to £750 in two years.
Labour MP Dan Carden has warned that housing benefit is 'completely inadequate' and that 'my constituents are now facing homelessness'.
Labour MP Rachel Hopkins says a family living in the cheapest 3-bed houses in Luton face an annual shortfall of £2,300, up £650 in months.< /p> ...
Local Housing Allowance (LHA) - the Universal Credit amount people receive to cover private rent - has been frozen since April 2020. And the page 66 of a fall Statement document confirmed to be frozen again until 2024
The local housing allowance has been frozen since April 2020 (
Image: Bloomberg via Getty Images)
Tory ministers have been told to 'get a handle' on a slippery benefit cut that will make 'more and more families homeless'.
Labour MPs today slammed the decision to freeze housing benefit for the third year running, despite inflation hitting 11.1%.
'Local Housing Allowance' (LHA), the Universal Credit amount people receive to cover private rent, has been increased in 2020 to cover the lowest 30% of housing in each area.< /p>
But it has been frozen in terms of cash since - and will now be frozen for another year until April 2024.
The latest freeze was confirmed in two lines of text on page 66 of a 'Costs of Politics' paper released alongside last month's Fall Statement.
Work and Pensions Secretary Mel Stride confirmed the freeze today, saying he won't be reviewing the LHA until 'this time next year'.
He also flagged that it could be frozen for even longer, saying: "I think it's worth bearing in mind that we're currently spending £30billion a year on housing benefit.
>"And that figure is expected to rise to around £50 billion by 2050, so there are cost considerations."
The freeze means housing allowances are reduced in real terms as rents soar, despite other allowances rising 10.1% in April.
The average monthly rent for a three-bed house in the North West has fallen from £690 to £750 in two years.
Labour MP Dan Carden has warned that housing benefit is 'completely inadequate' and that 'my constituents are now facing homelessness'.
Labour MP Rachel Hopkins says a family living in the cheapest 3-bed houses in Luton face an annual shortfall of £2,300, up £650 in months.< /p> ...
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