Theresa May announced yesterday that the LHA (Local Housing Allowance Cap), which was due to be implemented in April 2019 to social housing including supported housing, will not go ahead. Had the LHA Cap been applied, this would have left many residents who have their housing costs covered by Housing Benefit (or the housing element of Universal Credit) with a shortfall in their rent.
Vulnerable residents in supported / Independent Living would have been hit the hardest as their rents / service charges are usually higher due to extra costs for the care / maintenance and building costs.
This news is welcomed and it shows the Government has listened to the concerns of the social housing sector. Our Executive and SLT team have been part of lobbying the Government along with the National Housing Federation on the potential impacts of the LHA Cap being introduced.
The Government is due to release its full proposal on Tuesday 31 October, which will set out in detail their plans for funding supported housing.
We will continue to provide you with updates as the information becomes available.