CIH Welcome Local Housing Allowance

The Chartered Institute of Housing (CIH) has welcomed the report by the Work and Pensions Select Committee on the Local Housing Allowance (LHA) and CIH is pleased that much of its evidence submitted in a number of controversial areas has been reflected in the report.

CIH supports the Select Committee's recommendations to continue making direct payment of LHA to tenants in the first instance. CIH believes there should be no retreat from the current policy to pay LHA direct to tenants, as it is an important element in tenants developing greater personal responsibility to manage their own finances and overcoming barriers to work.

CIH agrees, however, that local authorities should make better use of their full discretion to pay rent direct to landlords where tenants are vulnerable or have particular difficulties in managing their finances. CIH stresses that local councils should identify tenants who may need greater financial guidance and advice and put the support in place at an early stage and should not need to wait until eight weeks arrears have accrued before switching payment to the landlord.


CIH had also called for the Departement for Work and Pensions (DWP) to review the criteria for setting the market boundaries that determine the LHA rates so that they better reflect the choices that are realistically available to those in low paid employment, and welcomes this recommendation in the Select Committee report.

The recommendation from the report that the £15 excess should be retained is welcome because it incentivises tenants to shop around and therefore helps mitigate against rent levels from coalescing around the LHA rate.

Richard Capie, CIH Director of Policy and Practice said: "We are delighted with the committee’s findings and that the recommendations so closely reflect the evidence we gave. We hope that these will now be taken forward by Government." 　　　　

(CD/GK)