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<p>Local Housing Allowance (LHA) rates are reviewed annually by the Secretary of State.
The review includes consideration of current rents, as well as the broader fiscal
context. Rent Service Scotland have responsibility for collecting the private rental
data that is used to help calculate LHA rates in Scotland.</p><p>From April this year
the Government is investing £1.2 billion increasing LHA rates to the 30th percentile
of local market rents in Great Britain. This significant investment ensures 1.6 million
private renters in receipt of Housing Benefit or Universal Credit will gain on average,
nearly £800 in additional help towards their rental costs in 2024/25. This includes
around 85k private renters in Scotland who currently receive LHA.</p><p>LHA provides
a reasonable level of housing support towards rental costs in the private rented sector.
LHA rates are not intended to cover all rents in all areas.</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 April 2017, DHPs
have been fully devolved to Scotland who are responsible for the allocation and payment
to Scottish local authorities.</p>
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