Opposition Day debate: Housing benefit cuts and supported housing

Summary

An Opposition Day debate on the impact of limiting Housing Benefit to Local Housing Allowance (LHA) levels for tenants living in supported housing owned by social landlords has been scheduled to take place on Wednesday 27 January 2016.

This measure was announced as part of the Spending Review and Autumn Statement 2015. It will apply to claimants with social sector tenancies entered into or renewed after April 2016; Housing Benefit entitlement will be impacted from April 2018. The policy is still being developed; there is no legislation currently before Parliament concerning this measure.

Rent levels in supported housing tend to be higher than those charged for similar accommodation in the private sector. This has given rise to particular concerns amongst providers of supported accommodation who are seeking an exemption from the imposition of LHA rates. Suppliers are arguing that they will be forced to close schemes and that they are already delaying/reconsidering the development of new schemes on the grounds that they will be unviable with Housing Benefit assistance for residents capped at LHA levels.