It is estimated that Local Housing Allowance rates cover less than 3% of advertised private rentals in England. However, it is estimated that around 45-50% of private renting households are claiming Universal Credit.

When the LHA was introduced in 2008, it covered 50% of private rental market properties in a given local area. If tenants secured a property priced below their designated LHA rate, they could be paid up £15 per week. However, now only less 3% of properties cost low enough for the LHA rates to cover the full cost. We call on the Government to increase LHA rates so they cover 50% of local properties to reduce the chance of the families needing to rent them becoming homeless.