In a significant step to support private renters, the Government has laid legislation to increase the Local Housing Allowance (LHA) starting in April.
This move is expected to make 1.6 million private renters on Universal Credit or Housing Benefit approximately £800 better off annually.
The £7 billion investment over the next five years is part of a broader £104bn cost of living support package by the Government.
This package includes measures such as raising benefits by 6.7%, increasing the state pension by 8.5%, and providing £300 cost of living payments. Over 7 million households have already received this payment, with another set for Spring.
Additionally, the Household Support Fund has made over 26 million payments, totalling over £2bn since October 2021, to help families with essentials.
Further financial relief is anticipated as 27 million people are poised to receive a significant tax cut with the main rate of employee National Insurance dropping from 12% to 10%. This tax adjustment translates to a saving of over £450 this year for the average worker.
Eligible renters could receive up to £1,850 per month for a four-bedroom property in Bristol, up to £850 for a two-bedroom property in Greater Glasgow, and up to £675 for a one-bedroom property in Leeds, subject to the benefits cap.
Work and Pensions Secretary Mel Stride remarked on the significance of this financial boost, emphasising the government’s commitment to aiding employment while providing substantial cost-of-living support. Minister for Disabled People, Health and Work Mims Davies highlighted the importance of bolstering families’ finances and the crucial role of this additional housing support.
Crisis Chief Executive, Matt Downie, welcomed the investment, noting its critical impact on preventing and ending homelessness, while Minister for Levelling Up Jacob Young pointed out the broader efforts to support those in the private rented sector, including the £30 bn already invested in housing support.
