THE LHA CAP WILL APPLY TO ALL TENANTS THAT RECEIVE UNIVERSAL CREDIT
- 23 Nov
According to the government, the Local Housing Allowance cap (LHA cap) will apply to all tenants that receive Universal Credit, Inside Housing, reports.
These details were stated by the government:
- The LHA cap for general needs accommodation will be pushed back a year to 2019
- It will apply to all tenants on universal credit and not just those who sign new or re-let tenancies, as was the previous policy
- It is unclear how many tenants could be affected by this change in policy
- In its roll out of Universal Credit, the government had originally intended seven million people to be claimants by the end of 2019
Lord Freud announced in a ministerial statement that this would "ensure simplicity and a streamlined process". He also said tenants who are moved from housing benefit onto Universal Credit after April 2019 will be protected "in cash terms" under a transitional arrangement.
Chief executive at Community Housing Cymru, Stuart Ropke, said:
"This policy is bad news for tenants. many people will be forced to make very difficult decisions about how they could make up the shortfall between what they received in benefits and their rent. It is now crucial that transitional protection is available for all who need it and who will be affected by this policy in Wales."
Director of policy and external affairs at the National Housing Federation, Gill Payne, said:
"Our primary concerns are for those under 35 on the lower shared accommodation rate of Local Housing Allowance. The Federation will be talking to government about safeguards for vulnerable people on this rate, for example, those leaving supported housing, homeless people and pregnant women."
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