Local Housing Allowance

The local housing allowance policy is kept under regular review and rates are reviewed annually. LHA rates were boosted with a £1 billion funding increase in 2010, and this significant investment has been maintained since then. Discretionary housing payments, or DHPs, are available for those who face a shortfall in meeting their housing costs.

Private rental costs in Wales increased by 4.2% in the year to February 2023, the highest annual percentage since the Tories came to power. The Government have accepted the need to uplift benefits in line with inflation, but they have completely failed to accept that the same principles should apply to the local housing allowance. Given that rent is the largest outgoing for a typical family budget, can I ask the Minister why?

There is no one-size-fits-all in regard to the challenge we face. This is a multi-layered and multi-textured challenge, and I hope the hon. Gentleman will be assured that I am focused on addressing the issue of rising housing costs. To that end, I am engaging with the Department for Levelling Up, Housing and Communities, and have consulted with the Local Government Association and other stakeholders. The hon. Gentleman has noted the devolved point—of course, I will look at that issue as well. LHA rates are not intended to meet all rents in all areas where rents may perhaps be more expensive. Those in receipt of benefits will have to make challenging choices, as others do, but people listening today should have a look at the household support fund and the benefits calculator on gov.uk and make sure that they are getting all the support that may be out there, as well as the cost of living payments.

I listened carefully to the Minister’s answer. Liverpool, Walton is the most deprived constituency in the whole of England, yet the annual gap between local housing allowance and the cheapest 30% of properties now stands at over £1,500. My casework contains more and more heartbreaking stories of families unable to afford the cost of their housing. People need their Government to act on rising private rents and the lack of decent homes: to raise the allowances and take control on rents in the short term, but to increase the supply of housing in the long term. What is this Government’s plan?

Mr Speaker, may I just confirm that the LHA rates were boosted by a £1 billion funding increase in 2020? I may have said 2010, so I apologise to the House, but that significant investment is maintained.

I recognise that rents are increasing, as the hon. Gentleman has said, and that it is a challenging fiscal environment and difficult decisions are having to be made. He has mentioned the most vulnerable. For those of working age or with disability benefits, those benefits have been increased in line with inflation for 2023-24. The benefit cap has also increased, but I want to reassure the House that I understand this is a real concern for many of our constituents of all sizes of house, and I am focused on addressing those challenges.

We are only on Question 2, so I am a little worried about how long it is taking. I call the shadow Minister.

The Government’s mortgage crisis is about to be the next blow to hit renters, because so many are renting from those with buy-to-let mortgages. Already, 49%—almost half—of children in privately rented homes with parents receiving universal credit are in absolute poverty, to take the Government’s preferred measure, and as we know, many of those parents work. Since then, rents across the country have risen by 9.5%, but the local housing allowance has risen by 0%. What does the Minister think is going to happen to low-income families with children in the private rented sector this year?

Those struggling with mortgage payments should engage with their mortgage lenders. We have abolished the zero earnings rule to allow claimants to continue to receive support while in work or on universal credit, and there is support for mortgage interest rates out there, so please do reach out. In fact, £25 million was paid in loans to 12,000 households in 2021-22, in order to support low-income homeowners. Over 200,000 low-income homeowners have been supported, and that has been a focus, but I understand the point that the hon. Lady makes. I assure her and the House that this is something that the Secretary of State and I are working on, as well as the Department for Levelling Up, Housing and Communities—it is not solely an issue for my Department—but I take on board her points.