Thank you for contacting me about homelessness.
I understand constituents’ anxieties regarding rising bills.
The benefit cap provides clear incentives for people to seek employment whilst providing help for the most vulnerable. The national cap is currently set at £20,000, rising to £23,000 in London. However, if claimants need extra support to meet rental costs they can approach their Local Authority for a Discretionary Housing Payment (DHP). Since 2011, over £1 billion has been invested in DHP funding and I am especially glad an additional £40 million of DHP funding for England and Wales has been allocated.
Exemptions from the cap are in place which protect families who experience a sudden change in their circumstances. For example, in the event someone loses their job, they may qualify for a grace period from the cap for 39 weeks. Exemptions also apply for the most vulnerable claimants who are entitled to disability benefits and carer benefits.
The Secretary of State for Work and Pensions reviews Local Housing Allowance (LHA) rates annually. In April 2020 investment in LHA rates was boosted by nearly £1 billion when rates were set at the 30th percentile of market rents, providing 1.5 million claimants with an average £600 more housing support in 2020/21 than they would otherwise have received. Rates have been maintained at their increased 2020 levels so that claimants continue to benefit from the significant increase.
Thank you again for taking the time to contact me.