Local housing allowance re-freeze

#23 —

Housing, Communities and Local Government Committee

Recommendation: The Government should review its decision to freeze Local Housing Allowance rates by maintaining the 30th percentile in cash terms only, and instead keep rates indexed at the 30th percentile long-term. This will help households across England to afford their …

Gov response: This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic. To help prevent people getting into financial hardship, we increased the local housing …

Under Consideration

#8 —

Work and Pensions Committee

Recommendation: The reset of Local Housing Allowance to cover the 30th percentile of rents was a welcome intervention at the start of the COVID-19 pandemic, but the increase has since been eroded by rising housing costs. Some parts of the country …

Gov response: On 9 June 2022, the Prime Minister announced a package of measures to turn Benefits to Bricks and improve access to home ownership, including for households in receipt of benefits. This is a cross-Government effort, …

Under Consideration

#25 — Maintain Local Housing Allowance rates at 30th percentile of market rents annually

Housing, Communities and Local Government Committee

Recommendation: We recommend that the Government reconsider its position on re-freezing local housing allowance rates from 2025–26 onwards. Instead, the Government must maintain LHA rates at least at the 30th percentile of local market rents each year to ensure that those …

Gov response: 47. The Government understands the importance of stable housing and is taking action to increase access to affordable housing. Increasing the Local Housing Allowance (LHA), in recognition of increasing rents, is a key part of …

Not Addressed

#24 — DWP temporary accommodation subsidy remains below full costs; MHCLG's consideration unclear

Public Accounts Committee

Recommendation: DWP explained that it sets the subsidy level using a rate that has never covered local authorities’ full costs, to incentivise them in their procurement of temporary accommodation. MHCLG added that it considers local authorities’ financial position with regard to …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The Department for Work and Pensions wrote to Committee, on 21 February 2025, setting out its justification for the levels of Local Housing Allowance …

Accepted

#23 — Local authorities face rising 'Temporary Accommodation Subsidy loss' from outdated LHA rates

Public Accounts Committee

Recommendation: LHA rates also impact the amount that local authorities can reclaim as a subsidy from DWP for temporary accommodation costs. The amount that can be reclaimed depends on a number of factors, including the January 2011 LHA rate appropriate to …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The Department for Work and Pensions wrote to Committee, on 21 February 2025, setting out its justification for the levels of Local Housing Allowance …

Not Addressed

#22 — Freezing Local Housing Allowance rates amidst rising rents increases homelessness and evictions

Public Accounts Committee

Recommendation: It its written submission, Shelter made the case for permanently linking LHA rates to the real cost of renting. It suggested that freezing the LHA rate at a time of record rent increases would trap families in homelessness and 25 …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The Department for Work and Pensions wrote to Committee, on 21 February 2025, setting out its justification for the levels of Local Housing Allowance …

Not Addressed

#21 — DWP unable to quantify system-wide consequences of increasing Local Housing Allowance rates

Public Accounts Committee

Recommendation: We asked DWP what analysis it had done on the extent to which homelessness is impacted by LHA rates not allowing people to afford rents in their area. It explained that the decision, for example, to freeze the LHA rate …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The Department for Work and Pensions wrote to Committee, on 21 February 2025, setting out its justification for the levels of Local Housing Allowance …

Accepted

#20 — DWP acknowledges 45% of households face Local Housing Allowance shortfall amid rising rents

Public Accounts Committee

Recommendation: The LHA sets the maximum amount of housing support that claimants of housing benefit and universal credit can usually receive, to help with housing costs in the private rented sector.26 Since 2011, DWP has introduced welfare reforms designed to reduce …

Gov response: 4. PAC conclusion: We are not convinced that, in setting Local Housing Allowance (LHA) rates, the Department for Work & Pensions (DWP) has given due consideration to the impact on homelessness. 4. PAC recommendation: Alongside …

Accepted

#4 — Set out DWP's detailed justification for Local Housing Allowance rates and temporary accommodation subsidy.

Public Accounts Committee

Recommendation: We are not convinced that, in setting Local Housing Allowance (LHA) rates, the Department for Work & Pensions (DWP) has given due consideration to the impact on homelessness. Reforms to welfare benefits since 2011, including periodically capping and freezing LHA …

Gov response: The government agrees with the Committee’s recommendation. Recommendation implemented The Department for Work and Pensions wrote to Committee, on 21 February 2025, setting out its justification for the levels of Local Housing Allowance it has …

Accepted

#22 — Evaluate the link between welfare reforms, Local Housing Allowance, and homelessness prevention funding.

Housing, Communities and Local Government Committee

Recommendation: MHCLG and the Department for Work and Pensions must use the Inter- Ministerial Group as an opportunity to evaluate the link between welfare reforms and homelessness, particularly regarding LHA rates. We agree with the Government on the principle that, as …

Gov response: The Government currently spends around £34 billion annually on housing support including around £12 billion in the private rented sector. Local Housing Allowance (LHA) rates, which set the maximum level of support in the private …

Not Addressed

#21 — Re-freezing Local Housing Allowance rates risks undermining homelessness funding and increasing costs.

Housing, Communities and Local Government Committee

Recommendation: We are also concerned that the Government’s decision to re-freeze Local Housing Allowance (LHA) rates from April 2025 will undermine the impact of additional homelessness grant funding. We have seen compelling evidence that this is a false economy. Re-freezing LHA …

Gov response: The Government currently spends around £34 billion annually on housing support including around £12 billion in the private rented sector. Local Housing Allowance (LHA) rates, which set the maximum level of support in the private …

Not Accepted

#34 — Reconsider freeze on Local Housing Allowance rates and extend support for housing acquisition

Housing, Communities and Local Government Committee

Recommendation: As we recommended in our previous report, England’s Homeless Children, the Government should reconsider its decision to freeze Local Housing Allowance rates and should extend its support for local authorities to acquire new housing stock through the Local Authority Housing …

Gov response: As the Government set out in our response to the Committee’s Report on Children’s Temporary Accommodation, when considering Local Housing Allowance (LHA) rates for 2025–26, the Government considered a range of factors, such as the …

Partially Accepted

#40 — Assess Local Housing Allowance impact on pensioner living standards; include older people's housing in strategy.

Work and Pensions Committee

Recommendation: The Government should assess the impact of the Local Housing Allowance on pensioners and whether it leaves them with the income needed for a minimum, dignified, socially acceptable standard of living and report back to the Committee by the end …

Gov response: The Local Housing Allowance (LHA) determines the maximum housing support for tenants in the private rented sector. It ensures that households, including pensioners, in similar circumstances living in the same area are entitled to the …

Not Addressed

#39 — Rising number of private renting pensioners are at increased risk of poverty from Local Housing Allowance.

Work and Pensions Committee

Recommendation: The Pensions Policy Institute expects the number and proportion of pensioners renting privately to grow from around 6% now to 17% in 2041. As many as 400,000 households could become dependent on means-tested benefits. Pensioners renting privately are already at …

Gov response: The Local Housing Allowance (LHA) determines the maximum housing support for tenants in the private rented sector. It ensures that households, including pensioners, in similar circumstances living in the same area are entitled to the …

Not Addressed

#32 —

Housing, Communities and Local Government Committee

Recommendation: We recommend that the Government restore the Local Housing Allowance rates to 30th percentile. (Recommendation, Paragraph 94)

Response Pending

#31 —

Housing, Communities and Local Government Committee

Recommendation: We remained concerned the government’s decision to freeze the Local Housing Allowance is contributing to more people being more at risk of homelessness and in need of temporary accommodation. The freeze also makes it difficult for councils to help households …

Response Pending

#26 —

Housing, Communities and Local Government Committee

Recommendation: We recommend that the Department for Work and Pensions unfreeze the subsidy rates by increasing the rate councils are reimbursed to match the current Local Housing Allowance rate. We also recommend that the Government conduct a detailed review of the …

Response Pending

#25 —

Housing, Communities and Local Government Committee

Recommendation: The rules that determine the amount of money councils can claim through the Housing Benefit subsidy system is restricting their ability to source good-quality temporary accommodation for households. The Department for Work and Pension’s ongoing freeze of the subsidy rates …

Response Pending

#24 —

Housing, Communities and Local Government Committee

Recommendation: We also call on the Government to temporarily boost funding to discretionary housing payments to meet the needs of the tens of thousands of households who are receiving no extra income from welfare increases due to the benefit cap. This …

Gov response: This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic. To help prevent people getting into financial hardship, we increased the local housing …

Under Consideration

#22 —

Housing, Communities and Local Government Committee

Recommendation: We call on the Government to deliver a specific financial package to support tenants to repay rent arrears caused by covid-19, having considered the examples in Scotland and Wales as well as many other international examples. This should be one …

Gov response: This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic. To help prevent people getting into financial hardship, we increased the local housing …

Under Consideration

#6 —

Housing, Communities and Local Government Committee

Recommendation: We call on the Government to deliver a specific financial package—we prefer discretionary housing payments—to support tenants to repay rent arrears caused by covid-19, in consultation with the Local Government Association and appropriate bodies representing renters and landlords. We received …

Gov response: This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic. To help prevent people getting into financial hardship, we increased the local housing …

Under Consideration

#22 —

Housing, Communities and Local Government Committee

Recommendation: The failure of local housing allowance (LHA) rates to keep pace with market rents is quite obviously making the private rented sector even less affordable for many people who are only there because the social housing sector has been cut …

Gov response: The Local Housing Allowance (LHA) determines the maximum housing support for tenants in the private rented sector. It ensures that claimants in similar circumstances living in the same area are entitled to the same maximum …

Under Consideration

#24 — Delay in increasing Local Housing Allowance rates exacerbated family housing crisis

Housing, Communities and Local Government Committee

Recommendation: We welcome the Government’s decision to increase Local Housing Allowance rates to the 30th percentile of local market rents from 1 April 2024. However, this is an urgent matter that required the Government’s immediate action. It is therefore disappointing that …

Gov response: 47. The Government understands the importance of stable housing and is taking action to increase access to affordable housing. Increasing the Local Housing Allowance (LHA), in recognition of increasing rents, is a key part of …

Accepted

#25 —

Housing, Communities and Local Government Committee

Recommendation: There is a case for reforming the Community Infrastructure Levy, but it is less clear that Section 106 agreements needed replacing. The Government should be mindful of the cumulative effect of the challenges posed to affordable housing provision by the …

Gov response: 51. The Government has considered the recommendations in the predecessor Land Value Capture report and the 2017 review of the Community Infrastructure Levy alongside the responses to the white paper. The proposal for a new …

Under Consideration

#20 —

Housing, Communities and Local Government Committee

Recommendation: We heard concerns about the Government’s First Homes programme, especially its potential impact on the provision of other forms of affordable housing. First Homes has an important part to play in delivering homeownership, and we hope that the Government has …

Gov response: 46. First Homes are an important part of our plans to make home ownership more widely available and affordable for local people and key workers. The Government has already changed national planning policy and issued …

Under Consideration

#99 —

Scottish Affairs Committee

Recommendation: Our survey on the experiences of people with social security in Scotland found that a majority (68%) felt that the money they received in support payments would not cover their bills for rent, food, internet, council tax and utilities. One …

Gov response: Universal Credit has provided a vital safety net for six million people during the pandemic, and the UK Government announced the temporary uplift as part of a £400 billion package of measures put in place …

Not Addressed

#9 —

Welsh Affairs Committee

Recommendation: However, in light of concerns about the rising costs of living, there is a need for a discussion about how to ensure benefits are adequate, affordable and sustainable. On the basis of the evidence presented there is a need for …

Gov response: The UK Government rejects these recommendations. The Department for Work and Pensions Ministers already have constructive engagement channels with Ministers in the Welsh Government on matters of mutual interest, and where areas of devolved and …

Under Consideration

#7 —

Work and Pensions Committee

Recommendation: The Housing Support Fund was designed to be a short-term measure but is now in its third funding cycle. While we all hope to see far more stability in the economy in coming years, the need for such funds highlights …

Gov response: The Government does not intend to conduct a specific review into the adequacy of benefit levels. There is no objective way of deciding what an adequate level of benefit should be as everyone has different …

Not Accepted

#17 — Make a commitment to annually uprate Local Housing Allowance to retain its 30th percentile value.

Work and Pensions Committee

Recommendation: The evidence is clear that support for housing costs cannot be viewed in isolation from wider support provided through other benefits. When and if claimants experience a shortfall in rent, this can impact other parts of household budgeting and erode …

Gov response: The Government understands the importance of stable housing and is taking action to increase access to affordable housing. Increasing the Local Housing Allowance (LHA), in recognition of increasing rents, is a key part of helping …

Under Consideration

#1 — Shared ownership becomes unaffordable due to full repair costs and expensive staircasing.

Housing, Communities and Local Government Committee

Recommendation: Shared ownership products can often become unaffordable over time due to having to pay for 100% of repairs and maintenance costs despite only owning a proportion of the property. This is exacerbated by the fact that these service charges can …

Gov response: 1. The Government launched its new model of shared ownership in April 2021, alongside the start of our £11.5bn 2021-26 Affordable Homes Programme (AHP). As noted by the Committee, the new model contains a ten-year …

Not Addressed

#2 — Families face prolonged temporary accommodation stays amid England's severe housing crisis.

Housing, Communities and Local Government Committee

Recommendation: During our inquiry we have also heard that, for many families, life in temporary accommodation is far from ‘temporary’. In some cases, families spend years in temporary accommodation, stuck in limbo without the stability of permanent accommodation and knowing that …

Gov response: 13. The Local Government and Social Care Ombudsman (LGSCO) provides an essential service investigating complaints when a homeless applicant is not satisfied with how the council has handled their case. It is important to have …

Under Consideration

#28 — Mandate the Water Commission to propose a single social tariff and monitor water poverty progress.

Environment, Food and Rural Affairs Committee

Recommendation: The Independent Water Commission’s proposals should contain provisions for establishing a single social tariff, or other protections for low-income households, to protect customers from the worst impacts of anticipated bill increases. The Commission’s proposals should also establish how effectively water …

Response Pending

#27 — Government has not set a timetable for developing a social tariff for low-income households.

Environment, Food and Rural Affairs Committee

Recommendation: The Government has not yet set out a timetable for developing a single and comprehensive social tariff to prevent protect low-income households from bill increases, despite the widespread view that it will be necessary in the context of much higher …

Response Pending

#6 — Diagnose the extent of the Section 106 affordable housing problem and improve Clearing Service effectiveness.

Public Accounts Committee

Recommendation: Given the shortage of social housing, it is unacceptable that unsold homes funded through Section 106 agreements are sitting empty. There is a growing problem of registered providers of social housing (RPs) not buying affordable homes funded by Section 106 …

Gov response: The government agrees with the Committee’s recommendation. diagnose the scale and causes of the build-up of unsold and uncontracted Section 106 (S106) units. Estimates vary, but it is not in dispute that thousands of unsold …

Accepted

#20 —

Housing, Communities and Local Government Committee

Recommendation: We recommend that the Secretary of State amend the Homelessness (Suitability of Accommodation) Order 2003 to extend the six-week limit to accommodation that cannot comply with the new Decent Homes Standard. The six-week limit should apply from the date that …

Response Pending

#9 —

Public Accounts Committee

Recommendation: The Department explained that the First Homes discount will be funded through contributions from developers.24 Local authorities will be expected to ensure 25% of affordable homes built by developers contribute to the First Homes initiative.25 However, we have previously criticised …

Gov response: 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 Under the new First Homes policy, developments will be expected to capture the same amount of value for affordable housing as they do now. …

Not Addressed

#6 —

Public Accounts Committee

Recommendation: Homes England forecasts that around 36% of homes (2,370 of the total 6,600 planned homes) built on the land remediated through funding intended for Starter Homes will meet the definition of affordable housing.16 We were concerned though that funding intended …

Gov response: 2020. HM Treasury, the Department for Business, Energy & Industrial Strategy (the department) and the British Business Bank (the Bank), based on a limited evidence of the underlying challenges for businesses, developed the Bounce Back …

Under Consideration

#2 —

Public Accounts Committee

Recommendation: The Department’s reliance on developer contributions to fund First Homes is a complex mechanism lacking transparency and risks less money being available to local authorities for housing and infrastructure. First Homes differ from Starter Homes as they will be sold …

Gov response: 2. PAC conclusion: The Department’s reliance on developer contributions to fund First Homes is a complex mechanism lacking transparency and risks less money being available to local authorities for housing and infrastructure. 2: PAC recommendation: …

Not Addressed

#21 —

Housing, Communities and Local Government Committee

Recommendation: The Government appears to lack a clear strategy to deal with rising rent arrears. We are very concerned that the Government is waiting until there is a clear crisis emerging before intervening, rather than heading off a growing rent arrears …

Gov response: This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic. To help prevent people getting into financial hardship, we increased the local housing …

Under Consideration

#18 —

Housing, Communities and Local Government Committee

Recommendation: The Government is in danger of breaking its pledge that no one should lose their home as a result of the pandemic. We have seen no satisfactory evidence for why the Government changed the definition of substantial rent arrears to …

Gov response: Protecting renters from eviction The Government has introduced an unprecedented set of measures to prevent people from losing their homes as a result of the COVID-19 pandemic. Measures taken included a six month stay on …

Under Consideration

#7 —

Welsh Affairs Committee

Recommendation: We welcome the swift changes to the financial support many claimants received during the pandemic, as well as to the operation of the overall system. We received evidence of the significant difference that the temporary £20 uplift made to those …

Gov response: There were various support mechanisms available to the self-employed, though eligibility will have varied according to how their enterprises were structured. As for the Department for Work and Pensions, its support included the easement on …

Under Consideration

#21 —

Housing, Communities and Local Government Committee

Recommendation: Demand for exempt accommodation is driven in part by a shortage of affordable homes. To solve the issues found in exempt accommodation the Government must solve the wider housing crisis. We reiterate the recommendations from our 2020 report, “Building more …

Gov response: 51.T hrough our £11.5 billion Affordable Homes Programme, we deliver affordable homes for both sale and rent, across England. We will increase the share of social rent homes within the programme and will be publishing …

Accepted

#3 —

Public Accounts Committee

Recommendation: We are concerned that the number of homes being built for social rent is not enough to meet demand. There is huge demand for social rent homes which is the only real, affordable option for many people. Despite this, the …

Gov response: The government disagrees with the Committee’s recommendation to make an assessment of demand. However, the government will continue to maximise delivery of social rent through a mixed tenure programme. The government acknowledges the need for …

Not Accepted

#19 —

Public Accounts Committee

Recommendation: Homes England recognised that success in delivering housing would rely on close working with local authorities, good relationships with developers and mindfulness over land value as the key determinant of delivery and maximising value for money from public subsidy of …

Gov response: 5. 1 The government agrees with the Committee’s recommendation. Target implementation date: April 2021 5.2. The department accepts the Committee’s recommendation to explain how it is addressing the problems of homelessness, rough sleeping and families …

Not Addressed

#14 —

Public Accounts Committee

Recommendation: Homes England told us that the number and proportion of affordable homes planned for the sites intended for Starter Homes has increased from 1,700 (29%) to 2,370 (36%), reflecting an increased focus on affordable housing.37 However, Homes England was unable …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The government defines affordable housing in the National Planning Policy Framework, Annex 2. This applies to a range of tenures including affordable housing for …

Not Addressed

#7 —

Public Accounts Committee

Recommendation: We asked the Department about the similarities between the new First Homes policy and the Starter Homes policy. The Department emphasised how they differ: • First Homes will be sold at a higher discount of at least 30%, compared with …

Not Addressed

#5 —

Public Accounts Committee

Recommendation: The long-term success of the Department’s housing policies depends on it being able to engage effectively with organisations across the housing sector and provide clarity on funding, without losing sight of the needs of those who are unlikely to be …

Gov response: 4: PAC conclusion: We welcome Homes England’s commitment to provide us with regular updates on its progress delivering affordable housing, but we are concerned that it and the Department has yet to clarify what ‘affordable’ …

Not Addressed

#17 —

Housing, Communities and Local Government Committee

Recommendation: The Government will fail in its homelessness objectives if it continues to oversee the delivery of just a few thousand social rent homes a year. The ongoing shortage of social housing is a clear, long-term obstacle to finding suitable accommodation …

Gov response: Time spent in temporary accommodation means people are getting help and it ensures no family is without a roof over their head. The Government is committed to reducing the need for temporary accommodation by preventing …

Under Consideration

#5 —

Housing, Communities and Local Government Committee

Recommendation: The Government will eventually have to come up with a policy response, because it cannot keep extending the evictions ban forever more.

Gov response: Protecting renters from eviction The Government has introduced an unprecedented set of measures to prevent people from losing their homes as a result of the COVID-19 pandemic. Measures taken included a six month stay on …

Under Consideration

#37 —

Work and Pensions Committee

Recommendation: We recommend that DWP works with external academics, local authorities and other government departments to identify options for reflecting the cost of housing in its local area estimates of children in low income families. DWP should write to us by …

Gov response: There is no single administrative data source of housing costs for individual families. Any new measure which takes account of housing costs would require significant development work. DWP has several statistical development priorities and therefore …

Not Addressed