Following the Government’s announcement, the LHA cap has been scrapped for all social housing.
The Government had planned to introduce the Local Housing Allowace (LHA) to social housing tenants where they were in receipt of Universal Credit or as signed a new or renewed tenancy from 1 April 2016. For single tenants under 35 years old the benefit eligible rent and service charge would have been capped to a shared accommodation rate (SAR) unless an exemption applies.
However, the Prime Minister announced on Wednesday 25 October 2017, that the Government will not be applying the Local Housing Allowance rates to Supported Housing nor to the wider social sector.
This means that Local Housing Allowance rates will not be applied from 2019 to Housing Benefit or Universal Credit for anyone in the social rented sector. This includes single people aged under 35 who would have been affected by the application of the Shared Accommodation Rate (SAR) in the social rented sector. The SAR is part of the Local Housing Allowance scheme and therefore will not be applied in the social rented sector from 2019 as previously planned.