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Irwell Valley welcomes latest news about Local Housing Allowance Cap

31 October 2017

Irwell Valley welcomes latest news about Local Housing Allowance Cap

Following the Prime Minister’s announcement that the Local Housing Allowance Cap (LHA Cap) for social housing is to be shelved, the Government has published further details today of its new proposed funding model for supported housing.

In a two year concerted campaign alongside other social housing providers in the region and the National Housing Federation, Irwell Valley Housing Association lobbied Government on the potential impacts of the LHA Cap being introduced.

The Cap, due to be implemented in April 2019, would have left many residents who have their housing costs covered by Housing Benefit (or the housing element of Universal Credit) with a shortfall in their rent.

Vulnerable residents in Supported and Independent Living were likely to be hit the hardest as their rents and service charges are usually higher due to extra services for their support as well as building and maintenance costs.

Last Tuesday, Theresa May announced that the LHA cap would not apply to supported housing and, today, Marcus Jones, Minister of State for Local Government, spelled out further details including a new proposed funding model for supported housing that will see funding for housing costs for long-term and sheltered housing services in the benefits system

Sasha Deepwell, CEO, Irwell Valley, commenting on the proposals, said: "We welcome the announcement that the Local Housing Allowance Cap will not be applied to Supported Housing and today’s statement from the Minister. The proposals address many of our concerns about long-term stability of funding for our most vulnerable residents. We will continue to work with our partners and Government to ensure that essential finance is secured to fund vital services for people who need it most."

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