Social landlords in Greater Manchester have offered to
run a regional pilot of an alternative to the controversial ‘Local Housing
Allowance (LHA) cap’ in supported housing. Supported and sheltered housing
providers fear government plans to cap benefit entitlement at LHA rates from
2019 could make their businesses unviable. LHA rates are set according to the
lowest 30% of local market rents, making them well below the rental cost of
supported housing. Under current proposals, councils would be given cash to top
up the difference but providers have voiced concerns that this system would
lead to uncertainty with new schemes under development on hold as a result.
Read more on Inside Housing.
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