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No Local Housing Allowance cap for supported housing

25 October 2017 (updated on 25 October 2017)

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The Chairs of the Work and Pensions and Communities and Local Government Committees have welcomed Theresa May's announcement that the Government will not apply the Local Housing Allowance cap to supported housing.

The announcement made during Prime Minister's Questions today comes following the publication in May of the Committees' joint report on the future of supported housing.

Local Housing Allowance out of the funding equation

Rt Hon Frank Field MP, Chair of the Work and Pensions Committee, said:

"Today's announcement that Government has heeded our recommendation, and will take Local Housing Allowance out of the funding equation for supported housing, is an important step towards protecting and boosting the supply of this crucial support for the most vulnerable.

We expect the full details in the Government's final response to our joint report shortly."

Supported housing valued deeply

Clive Betts MP, Chair of the Communities and Local Government Committee, said:

"Supported housing is valued deeply by those who live in it and contributes enormously to their independence and wellbeing.

The Government's proposals had caused considerable concern and I welcome the Prime Minister's announcement today that the Government will not apply the Local Housing Allowance (LHA) rate to Supported Housing. I commend the work of the Committees and of my colleague, Helen Hayes, who co-chaired the joint inquiry on this issue.

Our joint report told the Government that the LHA rate was "an inappropriate starting point for a new funding mechanism" and a serious threat to the future viability of the sector. We look forward to seeing the full details of the Government's new funding proposals when they are published next Tuesday."

Further information

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