In recent years, charities have been calling for an increase in the Local Housing Allowance (LHA) to help ease the financial stress of benefits tenants. The LHA is a government scheme that provides financial assistance to those on certain benefits, such as Universal Credit, to help them pay their rent.
The current rate of the LHA is set at a maximum of £250 per week for a one-bedroom property and £400 per week for a four-bedroom property. However, the cost of renting in many areas of the UK has risen significantly in recent years, with the average rent for a one-bedroom property now standing at £400 per week. This means that many tenants are struggling to make ends meet and are falling into rent arrears.
Charities such as Shelter and Crisis have been calling for an increase in the LHA to help ease the financial burden on benefits tenants. They argue that the current rate is simply not enough to cover the cost of renting in many areas, and that an increase is necessary to ensure that tenants can afford their rent.
The government has recently announced plans to increase the LHA by 1.7% from April 2021, but charities argue that this is not enough and that a much larger increase is needed. They point out that the rate of inflation has been much higher than 1.7% in recent years, meaning that the value of the LHA has decreased in real terms.
As well as calling for an increase in the LHA, charities are also urging the government to introduce other measures to help ease the financial burden on benefits tenants. These include increasing the amount of Universal Credit available to tenants, introducing rent caps in areas where rents are particularly high, and providing more support for those who are struggling with rent arrears.
It is clear that something needs to be done to ease the financial stress of benefits tenants. Charities are urging the government to take action and increase the Local Housing Allowance to ensure that tenants can afford their rent. Without an increase, many tenants will continue to struggle financially and risk falling into rent arrears.