There are reports circulating that Housing Secretary Michael Gove will be pushing Prime Minister Rishi Sunak to increase the Local Housing Allowance in the forthcoming Autumn Statement.

Over the weekend the BBC stated that a ‘pincer attack’ from Gove and Pensions Secretary Mel Stride telling Sunak to increase the Local Housing Allowance because of the crisis of the largest ever number of people in temporary accommodation.

LHA rates have been frozen since 2020.

The number of people in England being housed in temporary accommodation is at its highest ever recorded levels with landlords selling properties and those left increasing rents impacting many households. The latest government figures show  104,510 households during April to June were in temporary accommodation, which included 131,370 children.

However the BBC suggests the Treasury prefers to increase Universal Credit for low paid workers.

Apparently officials are drafting proposals to reduce the "taper rate" which decides how much people are able to earn before their benefits are cut.

Currently the taper rate stands at 55 per cent which means that for every £! earnt by someone above the personal work allowance their benefit (Universal Credit) payment is reduced by 55p.

The Institute for Fiscal Studies is claiming that only 5 per cent of private rented properties for let on Zoopla are affordable for housing benefit recipients because of the freeze.