Government ditch controversial LHA cap plans

// HA News

PM Theresa May has announced that the conservative government are ditching plans to cap housing benefit in the social housing sector at Local Housing Allowance rates at Prime Minster’s Questions this morning.

The plan has proved controversial from its inception, drawing much criticism from housing professionals and social landlords.

The sector was promised a green paper earlier this year. May confirmed that the future funding model for supported housing will be revealed next Tuesday.

May 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, and the full details will be made available when we publish our response to the consultation

“This is something we have been looking at very closely over the past year… and I can confirm that we will be publishing our response to that on Tuesday 31 October.

“It will look at a range of issues: we need to ensure the funding model is right so that all providers of supported housing can access funding effectively. We need to look at issues such as significant increases in service charges that have taken place recently, making sure that we are looking at cost control in the sector.

“But I can also say that we will not apply the Local Housing Allowance cap to supported housing – indeed we will not implementing it in the wider social housing sector, and the full details will be made available when we publish our response to the consultation.”

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