Powys Liberal Democrats call on the Chancellor to end stealth cuts to Local Housing Allowance in the budget
Powys Lib Dems have urged the Government to urgently unfreeze Local Housing Allowance and carry out a long-term review on its future, as rental costs have increased by 5.5% in the past year
Local Housing Allowance is intended to support households with housing costs and therefore ease pressure on social housing, as well as prevent homelessness in the long term.
It is calculated to cover rental costs for the lowest third of properties in the private rented sector in a particular area.
The Government’s decision to freeze LHA at its September 2024 value means that it is being cut in real terms month after month, reducing the number of affordable properties for families.
In Brecon, Radnor and Cwm Tawe, 3976 households currently claim housing entitlement through Universal Credit, and 2,757 households receive support via legacy housing benefits.
Meanwhile in Montgomeryshire and Glyndwr, 5,395 households currently claim housing entitlement through Universal Credit, and 3,162 households receive support via legacy housing benefits.
This means that thousands of households in Powys are impacted by the stealth cut and risk being unable to afford their home.
Liberal Democrat Chief Whip Wendy Chamberlain has tabled an Early Day Motion, supported by David Chadwick MP, which calls on the Government to urgently review Local Housing Allowance and to consider linking the benefit to rental market inflation.
Welsh Lib Dem MP for Brecon, Radnor and Cwm Tawe David Chadwick said: “I’m deeply concerned that thousands of people in Powys are unable to access rental properties because Local Housing Allowance is simply not in line with the reality of the rental market.
“We’re a few days from the Budget, and I urge the Government to unfreeze and restore LHA so that it covers at least the bottom 30% of rents in our local area.
“This is a major way in which we can prevent and alleviate homelessness and I hope that the Labour Government have the compassion to do so.”
Welsh Lib Dem Senedd Candidate for Montgomeryshire & Glyndwr Cllr Glyn Preston said: “Families across Montgomeryshire and Glyndwr are being pushed to the brink because Local Housing Allowance no longer reflects the reality of local rents. When support doesn’t keep pace with the market, people are left with impossible choices and too often that means falling into debt or facing homelessness.
“It shouldn’t be this way. Unfreezing LHA is a simple, practical step the Government can take right now to help households stay in their homes.”
