Government have revealed plans to end the four-year freeze to Local Housing Allowance (LHA) rates.
Will Quince, Minister of Welfare Delivery, said Government would be submitting a Bill to Parliament to legislate that after 1 April this year, rates will be raised in line with the Consumer Price Index (CPI) inflation rate (around 1.5 percent)
This will impact 900,000 claimants and will see the amount of housing benefit received by claimants rise by £10 per month on average.
Isobel Thomson, safeagent CEO said:
“We are encouraged by the announcement that the Government is lifting the freeze on Local Housing Allowance. This demonstrates an understanding of the pressure it placed on often vulnerable tenants in sourcing affordable accommodation and being able to afford to live on a day-to-day basis.
“It is a step in the right direction and a measure safeagent called for in our manifesto before the General Election.”