Thank you for contacting me about Housing Benefit and the private rented sector.
The Local Housing Allowance (LHA) determines the maximum financial support available for renters in the private rented sector. It applies to claims for Housing Benefit and the housing element of Universal Credit.
In April 2020, the Government boosted investment in the LHA by nearly £1 billion, providing 1.5 million claimants with around £600 more housing support in 2020/21 than they otherwise would have received.
The Government maintained LHA rates at their increased levels in 2021/22, and they will remain at those levels for 2022/23, so that everyone who benefitted from the increase will continue to do so. However, it is worth noting that LHA rates are not intended to meet all rents in all areas.
While three-quarters of private renters have no difficulties in keeping up with their rent, the Government understands that affordability may be an issue for some and that they may require additional support. Discretionary Housing Payments (DHPs) are available to those entitled to Housing Benefit or the Housing element of Universal Credit who face a shortfall in meeting their housing costs. Since 2011, the Government has provided around £1.5 billion in DHPs to local authorities.
The Chancellor announced in the Autumn Statement 2022 that the Government will provide £1 billion of extra funding by extending the Household Support Fund for another year, bringing the total of the fund to £2.5 billion. The fund is distributed by local authorities and helps cover the cost of daily essentials, for example energy bills and food.
More generally, I am keen to see a reform of the Housing system. I recently led a Housing Debate in Parliament on this topic, highlighting the need for more and stronger compulsory purchase powers to help the Isle of Wight Council, the need for the Island to use Exceptional Circumstances and the need for mandatory targets to be removed. We need housing in modest numbers, built for Islanders, in towns and on brownfield sites. We do not need unsustainable, low-density urban sprawl which has a negative impact on the environment.
Thank you again for taking the time to contact me.