Citizens Advice response to Frank Field MP’s motion to oppose the Government’s plans to alter the rules on LHA

Citizens Advice Head of Welfare Policy, Lizzie Iron said:

“Under current LHA rules, claimants can keep up to £15 of their benefit, if the LHA rate is higher than the rent they pay. This allows for choice, encourages fairer rents and rewards careful spending. Plans to remove this excess are ill thought-out, and risk having a considerable impact on levels of poverty without delivering any real savings to the DWP budget. Removing the £15 excess provision removes any incentive for tenants to shop around, and encourages landlords to charge up to the maximum allowance.

“We very much hope that DWP withdraws this proposal, or at the very least postpones it until sufficient data is available to make a full impact assessment, and the consequent impact on landlord and tenant behaviour has been fully explored.

Government cutting poorest families budgets by £780 says Sarah Teather

Some families will lose 20% of their income under the new governmental scheme

The Government is set to cut up to 20% of the income of some of the country’s poorest people in April, consultation documents highlighted by the Liberal Democrats have revealed.

Government plans to alter the Local Housing Allowance could leave low-income families £780 worse off. At the moment, families receiving Local Housing Allowance (LHA) are able to keep up to £15 a week if they choose a home with a rent below the Local Housing Allowance maximum for their area. Ministers now propose removing this £15 a week payment with immediate effect in April.

Commenting, Liberal Democrat Shadow Housing Minister, Sarah Teather said:

“£15 a week may be small change to ministers, but for families struggling to make ends meet it is incredibly important.

“The Government has a track record in secretly raising taxes for the poorest, most vulnerable people in our society. Now they are planning to abruptly take away a vital source of their income.

“This is a scheme that probably won’t save any money, but will make an enormous difference to the families suddenly losing 20% of their income.

“Gordon Brown has once again abandoned the people who need the most help.”