Local housing allowance

Reforms to Housing Benefit are a central part of the Government's plan to create a welfare system that supports the most vulnerable and is fair to taxpayers.
Around £24 billion a year is spent on Housing Benefit to support people with their housing costs, with over £1 billion in Discretionary Housing Payments having been provided to local authorities to help support vulnerable claimants. In the recent Spending Round, the Chancellor announced a further £40 million of funding for Discretionary Housing Payments, sending the annual budget up to £180 million from the £140 million spent this year.
I am assured that around 30 per cent of potential savings from the Local Housing Allowance freeze are being used to create further Targeted Affordability Funding, to help tenants in those areas where Local Housing Allowance rates differ the most from local rents. This has been used to increase 361 Local Housing Allowance rates by 3 per cent in areas with high rental costs in 2019-20. This year £210 million has been invested in Targeted Affordability Funding. It is estimated that over 500,000 households will benefit from these increases in Local Housing Allowance rates, seeing a real increase of around £250 a year.
Ultimately, however, I believe the key to improving affordability in the private rented sector across England is to build more homes. That is why I am glad that the Housing White Paper outlined an ambitious plan to fix the broken housing market and build the homes Britain needs. I was encouraged that further proposals in the recent Budget means the Government is on track to increase the housing supply by 300,000 a year.