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Social Security iconSocial Security / LHA Cap

Summary

As part of the Autumn 2015 Spending Review, the former Chancellor outlined plans to cap the amount of rent that Housing Benefit (HB) will cover in the social sector to the relevant Local Housing Allowance (LHA), which is the rate paid to private renters on Housing Benefit.

This cap was intended to impact on all social sector housing, affecting all mainstream tenancies from April 2016 and supported tenancies from April 2017.

The impact of an LHA cap on the Housing Benefit paid to vulnerable citizens living in supported accommodation is immense.

Single people under 35 will also be particularly adversely affected as they will only be entitled to 'Shared Room' rate.

These proposals put at risk tenancies of people in supported accommodation, including sheltered housing and people with learning and physical disabilities, addictions and people fleeing violence. 

These proposals also jeopardise future housing development as supported accommodation services become financially unviable.

The SFHA has been actively representing and promoting the interests of members by researching and campaigning against the cap.

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Policy Lead
Jeremy Hewer
jhewer@sfha.co.uk

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