- Greg Hands has welcomed extra support with the cost of housing for 111,000 households across London, as part of the Conservative Government’s targeted cost of living measures to support those most in need.
- The Conservative Government is introducing new legislation to Parliament to increase the Local Housing Allowance (LHA), which calculates housing benefits, benefitting 1.6 million low-income households and saving families an average of £800 in 2024-25.
- This uplift means housing benefits are more representative of current housing costs, helping low-income families with the cost of their rents.
Greg Hands has welcomed new legislation introduced to Parliament providing extra support with the cost of housing for 111,000 households across London by increasing the Local Housing Allowance.
Having delivered on the Prime Minister’s priority to halve inflation last year, alongside global economic conditions stabilising, the Conservative Government is now able to take the long-term decisions required to strengthen the economy and build a brighter future.
Exceptionally high rents, caused by global inflationary pressures, mean housing support provided to many on the lowest incomes have become out of step with market rates. By raising the Local Housing Allowance rate to the thirtieth percentile of local market rents in April 2024, the Conservative Government are supporting over one million families to meet current costs.
Over the next five years, £7 billion will be invested to support 1.6 million private renters on Universal Credit or Housing Benefit across the UK, benefitting households by an average of £800 for 2024-25.
This cost of living support is only possible thanks to the long-term, difficult decisions the Conservative Government took to get inflation falling and strengthen the economy.
Combined with the Back to Work Plan and other measures announced in the Autumn Statement for Growth 2023, only the Conservative Government will deliver a fair welfare system – supporting more people into work while providing a robust safety net to protect people from hardship during difficult economic times.
Commenting, Greg Hands said:
"This Conservative Government has a strong record in supporting those who need help with the cost of living – especially during the continued fight to keep inflation down and tackle higher energy bills.
The Conservative Government’s decision to increase the Local Housing Allowance (LHA) means 111,000 people across London will receive greater support with the cost of rent – in line with increased rents across the private sector.
This ensures the most vulnerable families across Chelsea and Fulham are supported.”
Commenting, Work and Pensions Secretary Mel Stride MP said:
“Housing costs are the number one expense for families.
This £1.2 billion boost to Local Housing Allowance, along with our landmark Back to Work reforms, reflects our fair approach to welfare – helping people into employment while protecting the most vulnerable with unprecedented cost of living support.”
ENDS
