Theresa May has revealed that the Local Housing Allowance (LHA) cap will not apply to supported housing or the social housing sector.
Speaking at Prime Minister’s Questions, May said: “This is something we have been looking at for the past year. It will look at a wide range of issues. It needs to make sure the funding model is right to ensure providers of supported housing are able to access funding effectively.
“We will not apply the Local Housing Allowance cap to supported housing. Indeed we will not be implementing it in the wider social rented sector, and the full details will be made available when we publish our response to the consultation.”
The Prime Minister confirmed that the government will publish its future model to support and sustain supported housing on 31 October 2017.
David Orr, chief executive at the National Housing Federation, responded to the announcement, saying: “We are absolutely delighted that the Prime Minister has heard the sector’s concerns and that the LHA cap will not apply to supported housing – and indeed the wider social housing sector. Housing associations have been vocal and clear that the LHA cap bore no relation to the real cost of providing supported housing, a view which had gained cross-party consensus. I know all social housing tenants will be relieved with the news. Things are really starting to change and it is great to see social housing getting the right kind of attention it deserves.”