Skip to main content

Local Housing Allowance

Volume 451: debated on Wednesday 8 November 2006

To ask the Secretary of State for Work and Pensions what estimates his Department has made of the impact of changing the definition for determining the local housing allowance from the mid point of local rents to the median on (a) the percentage of claimants facing a shortfall between their eligible and contractual rent and (b) the average size of that shortfall. (96141)

Any shortfall between the local housing allowance and contractual rent at the time of national roll-out of the local housing allowance will depend on the trends in local rent levels and the accommodation choices made by tenants. The trends in local rent levels up to the point of national roll-out are currently hard to predict and local housing allowance rates will vary across local private rent sector markets and different sizes of property.

However, we estimate that the majority of new claimants at roll-out will gain under the proposed national local housing allowance compared with what they would have been entitled to under the current housing benefit rules.