Riverside reaction to Government announcement that LHA cap for supported and social housing to be scrapped

Riverside – one of the country’s leading providers of housing, care and support – today welcomed the Government’s decision to drop the LHA cap for all social housing.

The not-for-profit, charitable housing association group has been a leading voice in a sector-wide campaign to halt plans to cap housing benefit to the Local Housing Allowance (LHA) for those living in supported accommodation and specialist housing for older people.

The Government’s proposals would have meant that thousands of homeless people and older people, as well as those with physical disabilities, mental health issues and other life challenges, would have had support for their housing costs through the benefit system cut, especially in the North of England where average LHA rates are typically lower.

Today (Wednesday 25 October), Theresa May announced during Prime Minister’s Questions that plans to introduce the LHA cap will be dropped for supported and all social housing.

The future funding model for supported housing will be revealed next Tuesday 31 October.

John Glenton, Riverside’s Executive Director of Care and Support, who gave evidence to MPs at Westminster on the issue, said: “This is a very positive step forward.

“We have worked with other providers to demonstrate the devastating impact and postcode lottery of using LHA as the basis for meeting the housing costs of some of our most vulnerable tenants, and the Government has demonstrated that it has listened.

“Clearly there are still many details to resolve, but we stand ready to work with Government to ensure that funding provides a secure basis for tenants to meet their housing costs.

“In addition to the announcement on supported housing, we are delighted that the Government has removed the threat of LHA caps for all social housing tenants, including single people under-35.

“We look forward to seeing more details from the Government next week.”