Emily Thornberry – 2015 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Emily Thornberry on 2015-11-09.

To ask the Secretary of State for Work and Pensions, with reference to paragraph 7.4 of the Explanatory Memorandum for the Rent Officers (Housing Benefit and Universal Credit Functions) (Local Housing Allowance Amendments) Order 2015 (S.I., 2015, No. 1753), how the Government plans to define higher rent increases for the purposes of determining eligibility for additional funding under the Targeted Affordability Fund.

Justin Tomlinson

Since 2014/15 the Government has made available £140 million in Targeted Affordability Funding (TAF). Over the next five years TAF will be drawn from recycling a percentage of the savings from the freeze of Local Housing Allowance (LHA) rates. As a result of the level of savings produced by the freeze next year there will be no TAF available in 2016/17; however, there will be funding from 2017/18 to 2020/21.

From 2017/18 around 30 per cent of the potential savings per year from the freeze to LHA will be used to support areas where higher rent increases are causing a shortage of affordable accommodation.

The level of TAF in 2016/17 would have been the same if, as planned, LHA rates had been uprated by CPI inflation. This is because the CPI forecast in September was zero (0.01 per cent) and therefore LHA rates would not increase in 2016/17 but would remain at the 2015/16 levels.

The amounts of TAF which will be available each year from 2017/18 and the plans to distribute it will be announced in due course.