Exact amount Local Housing Allowance rates will rise by - from highest to lowest

12 January 2024 , 14:26

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Local Housing Allowance rates are rising in April (Image: Getty Images/iStockphoto)

Local Housing Allowance (LHA) rates are rising from April 2023 which means millions of renters are set to see a major boost to their finances.

Local Housing Allowance, which has been frozen since 2020, sets the maximum amount people renting from a private landlord can claim in Housing Benefit or Universal Credit. Local Housing Allowance rates are used to calculate Universal Credit and Housing Benefit payments for tenants renting from private landlords.

From April, rates will be increased to cover the cheapest 30% of local market rents in the year leading up to September 2023. This means people renting a home among the cheapest 30% of private rental properties in their area should be able to cover their entire rental costs with just their benefit payments.

The rates are set differently for shared, one bed, two bed, three bed and four bed accommodation and the level of support is based on the area where you live and the size of the household. This means the exact amount you can claim differs depending on where you live.

Due to the way housing allowance is calculated, some areas will receive bigger boosts in payments compared to others. For example, people living in a three bedroom property could see their housing allowance rise by £350.01 a month. Over a year this would be an increase of £4,200.12 reports The Sun.

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However, places such as Dumfries and Galloway will not be seeing rises such as this. In Dumfries and Galloway renters will only see a boost of 17p for a three bedroom house going from £499.83 to £500.01. The DWP says it will be investing £7billion over the next five years. Overall, The DWP says around 1.6million renters will be £800 a year better off due to the rise in rates.

Local Housing Allowance rises in April 2024

Areas with the biggest boost

• Bristol - Now: £950 - April 2024: £1,300.01 - Increase: +£350.01
• York - Now: £725 - April 2024: £1,049.98 - Increase: +324.98
• Cherwell Valley - Now: £899.99 - April 2024: £1,184.99 - Increase: +£285
• Aylesbury - Now: £1,049.98 - April 2024: £1,329.99 - Increase: +£280.01
• Edinburgh - Now: £1,100 - April 2024: £1,375.01 - Increase: +£275.01

Areas with the smallest boost

• Dumfries and Galloway - Now: £499.83 - April 2024: £500.01 - Increase: +17p
• Ceredigion - Now: £529.99 - April 2024: £550.02 - Increase: +£20.03
• Durham - Now: £449.99 - April 2024: £475.02 - Increase: +£25.03
• Darlington - Now: £495.01 - April 2024: £529.99 - Increase: +£34.98
• Wrexham - Now: £560.01 - April 2024: £599.99 - Increase: +£39.98

These figures represent areas renting a three bedroom property. You can find out how much Local Housing Allowance you could be entitled to using the Government's Local Housing Allowance rates calculator on the Valuation Office Agency's (VOA) website here.

Ruby Flanagan