Local Housing Allowance £800 boost for 1.6 million renters

The UK government has announced an increase in Local Housing Allowance (LHA), benefiting more than one million renters with an average cash boost of £800 a year.  The LHA boost, effective from April, is expected to make 1.6 million private renters on either Universal Credit or Housing Benefit financially better off.

Housing costs are highlighted as the primary expense for families, and the £1.2 billion LHA boost aims to support families with increased living expenses.

Work and Pensions Secretary Mel Stride emphasized the government’s fair approach to welfare, helping people enter employment while providing cost-of-living support to vulnerable individuals.  Minister for Disabled People, Health and Work Mims Davies highlighted the importance of the housing support boost, making average renters approximately £800 better off.

The Local Housing Allowance determines the maximum housing support for private renters, ensuring consistency in entitlement for claimants with similar situations in the same area.  The level of support is based on the individual’s location and household size.

Eligible renters, subject to the benefits cap, could receive varying amounts based on their location and property size. For example, a four-bedroom property in Bristol could receive up to £1,850 per month, a two-bedroom property in Greater Glasgow up to £850 per month, and a one-bedroom property in Leeds up to £675 per month.

Crisis Chief Executive, Matt Downie, emphasized the importance of the housing benefit boost in preventing and ending homelessness. The investment is seen as crucial to helping individuals on the lowest incomes afford rising rental costs. The hope is for the investment to be maintained in the long term to support the mission to end homelessness.



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