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<p>The Local Housing Allowance (LHA) determines the maximum housing support for tenants
in the private rented sector. LHA rates are not intended to cover all rents in all
areas. Data on local LHA rates and averages can be found in the attachments provided.</p><p>
</p><p>In 2020 we spent almost £1 billion increasing LHA rates. These rates were aligned
to the 30th percentile of market rents in Broad Rental Market Areas (BRMA) across
the country, therefore in those areas with higher rent costs this is reflected in
higher LHA rates for that BRMA. In 2022/23, the Government is projected to spend around
£30 billion to support renters. This is approximately 1.4% of GDP, more than any other
OECD country, with the next highest being 0.9% of GDP.</p><p> </p><p>Information on
the legislation increasing LHA rates to 30<sup>th</sup> percentile in April 2020 can
be found <a href="https://www.legislation.gov.uk/uksi/2020/371/regulation/4" target="_blank">here.</a>
Information on the legislation maintaining LHA rates at their current rates for 2023/24
can be found <a href="https://www.legislation.gov.uk/uksi/2023/6/contents/made" target="_blank">here.</a></p><p>
</p><p>For those who face a shortfall in meeting their housing costs and need further
support, Discretionary Housing Payments (DHPs) are available from local authorities.
Since 2011 the Government has provided nearly £1.6 billion in DHP funding to local
authorities.</p><p> </p><p>We recognise that rents are increasing. However, the challenging
fiscal environment means that difficult decisions have been necessary to ensure support
is targeted effectively. Overall, the Government is providing total support of over
£94 billion over 2022/23 and 2023/24 to help households and individuals with the rising
cost of living.</p>
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