The two committees who launched a joint report into the Local Housing Allowance cap have hailed the u-turn as a “positive step”.
Announced in Prime Ministers Questions earlier today, the LHA cap will no longer apply to supported housing, or social housing as a wider sector.
Rt Hon Frank Field MP, Chair of the Work and Pensions Committee, said: “Today’s announcement that Government has heeded our recommendation, and will take Local Housing Allowance out of the funding equation for supported housing, is an important step towards protecting and boosting the supply of this crucial support for the most vulnerable.
“We expect the full details in the Government’s final response to our joint report shortly.”
Clive Betts MP, Chair of the Communities and Local Government Committee, said: “Supported housing is valued deeply by those who live in it and contributes enormously to their independence and wellbeing.
“The Government’s proposals had caused considerable concern and I welcome the Prime Minister’s announcement today that the Government will not apply the Local Housing Allowance (LHA) rate to Supported Housing.
“I commend the work of the Committees and of my colleague, Helen Hayes, who co-chaired the joint inquiry on this issue.
“Our joint report told the Government that the LHA rate was ‘an inappropriate starting point for a new funding mechanism’ and a serious threat to the future viability of the sector.
“We look forward to seeing the full details of the Government’s new funding proposals when they are published next Tuesday.”