Minister urges DWP to lift local housing allowance freeze

Scotland’s housing minister has urged the UK Government to lift its freeze on local housing allowance.

In a letter to UK Work and Pensions Secretary Liz Kendall, Paul McLennan stressed the impact in Scotland of the devolved benefit being frozen.

The UK Government-controlled payment provides cash to people on low incomes who rent from a private landlord, with rates based on the rental market in the local area.

The decision was taken in the UK Government’s October Budget to freeze the rates at 2024-25 levels.

In his letter, Mr McLennan pushed for the rates to be increased to cover up to the 30th percentile of local rental homes, pointing to the upcoming spring statement due from Chancellor Rachel Reeves for the reversal.

“Whilst we will continue to do all we can to support households struggling with the impact of the freeze within devolved powers, the UK Government must commit to unfreezing LHA rates,” he said.

“Research from the Resolution Foundation estimates that permanently repegging LHA rates to the 30th percentile of local rents would mean 75,000 fewer children in poverty by the end of the UK Parliament.

“This is a missed opportunity to help lift many children out of poverty.

“I am therefore calling on you to end the uncertainty and ensure that LHA rates will permanently meet at least the 30th percentile of local rents in future years.

“The upcoming spring statement is an opportunity to reverse the freeze and deliver adequate support to private sector tenants.”

The UK Government has been contacted for comment.