Response - Local Housing Allowance and larger properties

By: Francesca Albanese  Published: February 2009

Shelter does not agree with the proposal to cap Local Housing Allowance (LHA) rates at the five bedroom rate for all new customers with effect from 6 April 2009.


These changes are intended to support a level of LHA that provides a fair deal to both customers and to the taxpayer by ensuring that excessively high rates of benefit cease for new claims and gradually phase out for existing claims. However, this is not an issue that arose when LHA was in its pilot phase or under the old local reference rent (LRR) system. We therefore feel that alternative solutions need to be implemented before resorting to a national cap on rates for properties over five bedrooms.


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