HB For Social Tenants To Be Capped At LHA Rates

Housing benefit for social housing tenants will be capped in line with the private sector to stop social landlords charging “inflated rent”, George Osborne has announced. The policy, which was announced by the chancellor in the Spending Review, will limit housing benefit for social renters taking up new tenancies to Local Housing Allowance rates. It is expected to save £225m each year by 2020/21, according to the Spending Review and Autumn Statement document. The move means that housing benefit for single people in social housing under 35 without children will be restricted to shared accommodation rates. This means they will only be able to claim the same amount of benefit as a private tenant is able to claim for a room in a shared house. Read more on Inside Housing.