Monitoring the impact of changes to the Local Housing Allowance system of Housing Benefit: final reports: summary

Document type
Summary
Author(s)
Beatty, Christina; Cole, Ian; Powell, Ryan
Publisher
DWP
Date of publication
1 July 2014
Series
Research summary
Subject(s)
Poverty Alleviation Welfare Benefits and Financial Inclusion, Housing and Homelessness
Collection
Social welfare
Material type
Reports

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Local Housing Allowance (LHA) is a way of calculating HB for tenants in the deregulated PRS. Changes to the LHA system were announced in the June 2010 Budget and the Spending Review of 2010. These measures include: changing the basis for setting LHA rates from the median (50th) to the 30th percentile of local market rents; capping LHA rates by property size and scrapping the five-bedroom rate; removing the £15 per week excess that claimants could keep if their maximum LHA entitlement exceeded their rent; increasing financial support for Discretionary Housing Payments (DHPs); temporarily widening the discretion of local authorities to make direct rent payments to landlords in return for rent reductions; and raising the age at which the Shared Accommodation Rate (SAR) applies from 25 to 35.

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