I have recently received a number of e-mails about the impact of the Local Housing Allowance freeze (LHA).
Improving the affordability of housing in the private rented sector is an important matter facing us today. Reforms to Housing Benefit are a central part of the Government’s plan to create a welfare system that supports the most vulnerable and is fair to taxpayers.
Around £24 billion a year is spent on Housing Benefit to support people with their housing costs, with over £800 million in Discretionary Housing Payments provided to local authorities to help support vulnerable claimants.
In addition, I am assured that around 30 per cent of potential savings from the LHA freeze will be used to create further Targeted Affordability Funding to help tenants in those areas where local housing allowance rates have diverged the most from local rents. I am pleased that this has already been used to increase 48 LHA rates by 3 per cent in areas with high rental costs this year. I understand that further funding will be available for this purpose in 2018-19 and 2019-20.
I believe however, that the underlying key to improving affordability in the private rented sector is to build more homes. That is why I am glad that the Housing White Paper, which was published in February this year, outlined an ambitious plan to fix the broken housing market and build the homes Britain needs. This includes getting the right homes built in the right places, speeding up house building, and diversifying the market.
I was especially pleased that in her speech to the Conservative Party Conference, the Prime Minister announced a £2 billion increase to the affordable housing budget, bringing the total budget to £9 billion. Plans were also announced in the speech to allow homes to be built for social rent, well below market value, in areas of the country where the need is deemed greatest.
If anyone in Broxtowe is having issues with the receipt of their Local Housing Allowance, please contact my Constituency Office (see contact tab for details) and I’ll be happy to help where I can.
Thank you for contacting me about this important issue.