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Government drop LHA cap on social rents 27/10/2017 Labelled as Finance

Ahead of publication of the government's plans for the future funding of supported housing, the Prime Minister has announced that the government has dropped plans to cap housing benefit in the social housing sector at Local Housing Allowance (LHA) rates.


Following earlier consultation on the future funding model for supported housing the Department for Communities & Local Government (DCLG) have announced that the future funding model for supported housing will be revealed next Tuesday, 31 October.


However, in answer to a question at Prime Minister's Question Time in Parliament, Theresa May said: "We will not apply the Local Housing Allowance cap to supported housing - indeed we will not be implementing it in the wider social housing sector, and the full details will be made available when we publish our response to the consultation". 


Plans to cap housing benefit entitlement to LHA rates were first announced by then Chancellor George Osborne in the 2015 Autumn Statement.  


John Bibby, ARCH Chief Executive comments:


Coming on top of the proposals for a new social rent policy limiting rent increases to CPI+1%, the announcement by the Prime Minister that the government intend to drop proposals to cap housing benefit entitlement at the Local Housing Allowance rates will come as welcome news to both social landlords and their tenants. We will of course need to see the full detail of what this announcement means when the government's proposals are published on the 31 October but it is another indication that this government is listening to the concerns of the sector.

Watch out for more details in the next ARCH Bulletin.

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