Latest Public Sector News

05.12.13

Local housing allowance rates rise in London

London Councils is celebrating after securing a rates rise exemption for half of the capital’s local housing allowance (LHA) rates.

Instead of the planned 1% annual rise, the LHA will rise by 4% for 35 of London’s 70 LHA rates “in recognition of London’s unique circumstances, including higher housing costs”, the DWP has announced.

Mayor Jules Pipe, chair of London Councils, which represents London’s local authorities, said: “Housing costs in the capital are spiralling at a rate well above any other region, so it is very welcome that the share of the money given to London reflects this crisis and the fact housing is now the top concern for Londoners.

“Unfortunately the overall LHA cap leaves a real gap between what is actually ‘affordable’ and what help is offered. Many Londoners will still face an uncertain Christmas as they struggle to afford a roof above their head.”

The LHA rates capped in 2011 will not rise, as the government wants to prevent them going above certain levels. Those parts of London are likely to become less affordable, the organisation said.

LHA is paid to private landlords on behalf of tenants who need assistance in making up their rent.

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