London Councils group urges Chancellor to end freeze on Local Housing Allowance
The cross-party body representing London boroughs has written to the Chancellor highlighting homelessness in the capital as an “emergency situation” and has called for an end to the freeze on Local Housing Allowance (LHA).
The joint letter, sent by London Councils' Labour, Conservative, and Liberal Democrat housing leads ahead of the Autumn Statement, argues that raising LHA – a form of housing benefit that goes to lower-income households living in privately rented accommodation – is the “single fastest way to reverse the deeply concerning rise in homelessness in London and across the country”.
The letter notes that one in seven London private renters rely on LHA to cover their housing costs, but LHA has fallen “far behind” fast-rising rents in the capital.
Independent research commissioned by London Councils earlier this month revealed that 60,000 Londoners living in the private rented sector are set to become homeless in the coming years if the LHA freeze is maintained.
The research found that restoring LHA to cover at least 30% of local market rents would help these private renters avoid homelessness.
London Councils said that an uplift to LHA is one of its “top priorities” for the Autumn Statement, noting that it could provide additional wider benefits to public services including “improved health from better accommodation conditions and reduced pressures on the criminal justice system”.
The cross-party body also urged the Government to bring forward a cross-departmental strategy to reduce homelessness. It said: “Tackling homelessness must become a major priority at a national level with government departments working together – in addition to key partners such as local authorities – as effectively as possible”.
Additional policy asks for tackling homelessness outlined by London Councils included:
- Provide an emergency boost to Homelessness Prevention Grant funding. Councils require an emergency funding increase to ensure local services have the resources needed in the face of rising levels of demand for support.
- Support councils to buy accommodation sold by private landlords. The Government should build on initiatives such as the Local Authority Housing Fund by providing increased capital investment for housing acquisitions, particularly to acquire homes being sold by private landlords as they exit the market.
- Increase Discretionary Housing Payments. They are an essential homelessness prevention tool, but government funding for Discretionary Housing Payments in 2023-24 has been frozen at 2022-23 levels, despite significantly increasing homelessness pressures.
A Government spokesperson said: “We’re helping to ease the pressure of rising rents, investing over £30 billion on housing support this year on top of record financial support worth around £3,300 per household.
“We’ve also maintained our £1billion boost to Local Housing Allowance while our Discretionary Housing payments provide a safety net for anyone struggling.”
Lottie Winson
