Vale of Clwyd MP Dr James Davies has welcomed new legislation introduced to Parliament providing extra support towards the cost of housing for 38,000 households across Wales, via an increase to the Local Housing Allowance (LHA).
Exceptionally high rents, caused by global inflationary pressures, mean housing support provided to many on the lowest incomes have become out of step with market rates. By raising the Local Housing Allowance rate to the thirtieth percentile of local market rents in April 2024, the Conservative Government are supporting over one million families to meet current costs.
Over the next five years, £7 billion will be invested to support 1.6 million private renters on Universal Credit or Housing Benefit across the UK, benefitting households by an average of £800 for 2024-25.
Commenting, James said:
“This Conservative Government has a strong record in supporting those who need help with the cost of living – especially during the continued fight to keep inflation down and tackle higher energy bills.
“The Government’s decision to increase the Local Housing Allowance (LHA) means 38,000 people across Wales will receive greater support with the cost of rent – in line with increased rents across the private sector.
“This ensures the most vulnerable families in the Vale of Clwyd are supported.
He added:
“The increase to the LHA has been welcomed by many housing and homelessness organisations and is part of the Government’s £104 billion cost of living support package – worth an average £3,700 per household. This also includes raising benefits by 6.7%, the state pension by 8.5%, and up to £900 cost of living payments, with over 7 million households receiving the latest payment and another payment coming in February. Whilst more than 26 million payments totalling over £2 billion to help families with essentials have been made since October 2021 through the Household Support Fund.
“This additional support comes as 27 million people are set to get a significant tax cut as the main rate of employee National Insurance will be cut from 12% to 10%.This reduces National Insurance by more than 15% in total, saving £450 this year for the average salaried worker on £35,400.
Commenting, Work and Pensions Secretary Mel Stride MP said:
“Housing costs are the number one expense for families.
"This £1.2 billion boost to Local Housing Allowance, along with our landmark Back to Work reforms, reflects our fair approach to welfare – helping people into employment while protecting the most vulnerable with unprecedented cost of living support.”
