Today the government announced that it has scrapped its plans to cap housing benefit at Local Housing Allowance (LHA) rates for all social housing.
When asked a question at PMQs about supported housing, the Prime Minister said, “We will not apply the Local Housing Allowance cap to supported housing – indeed we will not be implementing it in the wider social housing sector.”
Responding to this announcement Ben Collins, NIFHA Chief Executive said “The decision by the government not to apply the LHA cap to the social housing sector removes uncertainty housing associations and their tenants. NIFHA’s own research showed that the impacts of applying the LHA cap to the social rented sector would have been particularly detrimental in Northern Ireland both socially and economically.
Housing associations are committed to providing good quality affordable homes, the LHA cap would have made many social housing developments financially unviable. We look forward to seeing further details of the governments plans on 31st October.”