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The press release issued by the Department for Work and Pensions on 9 January 2024.

Around 82,500 renters in Wales are set to receive a boost to their housing support in April, as the Government lays legislation to increase Local Housing Allowance (LHA).

Around 1.6 million private renters across Great Britain are set to receive a substantial boost to their housing support in April, as the Government lays legislation to increase Local Housing Allowance (LHA). In Wales, around 82,500 households are set to benefit from the boost.

The boost will benefit some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year.

The support worth over £7 billion over the next five years comes as the government publishes the proposed LHA rates for 2024/25, with people living in the most expensive areas set to see the biggest boost.

Subject to the benefits cap, eligible renters of:

• Four bed in the Cardiff Broad Rental Market Area could get up to £1,300 a month.
• Three bed in the Monmouthshire Broad Rental Market Area could get up to £795 a month.
• Two bed in the Merthyr & Cynon Broad Rental Market Area could get up to £500 a month.

The increase to the LHA has been welcomed by many housing and homelessness organisations and is part of the Government’s £104 billion cost of living support package – worth an average £3,700 per household. This also includes raising benefits by 6.7%, the state pension by 8.5%, and £300 cost of living payments, with over 7 million households receiving the latest payment and another payment coming in Spring.

This additional support comes as 27 million people are set to get a significant tax cut as the main rate of employee National Insurance will be cut from 12% to 10%. This reduces National Insurance by more than 15% in total, saving £450 this year for the average salaried worker on £35,400.

Work and Pensions Secretary Mel Stride said:

Housing costs are the number one expense for families. This £7 billion boost to Local Housing Allowance over the next five years, 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.”

Minister for Disabled People, Health and Work Mims Davies said:

Keeping inflation down and supporting people to stay and progress in work is the best way we can bolster families’ finances and help them progress, but we know some are still struggling which is why we are providing this important extra help.

This key boost to our housing support will see average renters around £800 better off. It is just one crucial part of our £104 billion package to help the most vulnerable which also includes an increase to benefits in line with inflation and our latest series of cost of living payments.”

Secretary of State for Wales, David TC Davies said:

I’m pleased this extra support will benefit tens of thousands of households across Wales, which comes on top of the already substantial support that the UK Government has already provided over recent months to support people with the cost of living.

At a time when many people are concerned about paying the bills, the UK Government continues to focus on helping the most vulnerable in all parts of Wales”.

Crisis Chief Executive Matt Downie said:

It cannot be understated just how vital this investment in housing benefit will be in helping to both prevent and end homelessness.

In recent years, people receiving housing benefit have found it increasingly difficult to afford the soaring cost of rents. Giving housing benefit this crucial boost will make a real difference to people across Great Britain and will relieve some of the pressure facing people on the lowest incomes.

We hope this investment will be maintained for the long term, so we can continue with our collective mission to end homelessness for good.”

The investment comes on top of the £30 billion support the government is providing over 2023/24 on housing support.

Minister for Levelling Up Jacob Young said:

This funding boost is just one part of how we’re supporting people in the private rented sector with the cost of living.

We have already invested £30 billion in housing support, along with Discretionary Housing Payments which provide an added safety net for anyone struggling to meet their rent.

We are taking the long term decisions needed for a better private rented sector, through our Renters Reform Bill, giving tenants security and supporting good landlords.”

The Local Housing Allowance determines the maximum housing support for private renters. It ensures that claimants in the same area with similar situations are entitled to the same maximum support regardless of the rent they pay. The level of support is based on the area where the person lives and the size of their household.