Caritas Anchor House

Working at the heart of homelessness

Housing benefit cap will not apply to supported housing

Our News in Brief

Housing benefit cap will not apply to supported housing

26th October 2017
Caritas Anchor House welcomes the news that the prime minister has reversed the LHA cap decision for those living in social and supported housing.

The proposed Local Housing Allowance (LHA) cap would have seen a cap on the amount of rent that housing benefit would cover in the social sector, applied in April 2019.

It would have hit the most vulnerable in our society, and could have led to rent arrears and increased risks of people becoming homeless. It would also affect those living in supported housing, with concerns it would be made completely unaffordable.

Research by the National Housing Federation in 2016 suggested those claiming housing benefit in London would have faced the largest shortfall. 14% would have been out of pocket to the tune of £1,642.68 a year.

Coupled with the recent rent settlement announcement, this decision provides some certainty over the future of supported housing providers.

We now look forward to seeing the detail of the government’s new proposed funding model for supported housing when it is announced on 31st October.

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