UK renters set to have £800 added to their bank accounts from April

Millions will see £800 added to their bank accounts on average - as Local Housing Allowance soars in April.

Benefit claimants who are renting to be £800 better off under new The Department for Work and Pensions rates. Millions will see £800 added to their bank accounts on average - as Local Housing Allowance soars in April.

The Local Housing Allowance rates have been frozen since April 2020, but in April this year, they will be reset to cover the cheapest 30% of rents in an area. The DWP says the plans will impact around 1.6 million private renters on Universal Credit or Housing Benefit and will see them be £800 better off a year.

Work and pensions secretary Mel Stride said in a statement on Tuesday: “Housing costs are the number one expense for families. This £7 billion boost to Local Housing Allowance over the next five years, along with our landmark Back to Work reforms, reflects our fair approach to welfare – helping people into employment while protecting the most vulnerable with unprecedented cost of living support.”

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The changes were confirmed by Jeremy Hunt last year. The Chancellor and Prime Minister Rishi Sunak announced the changes in the Autumn Statement and Budget back in November, as the alterations and uplift were confirmed.

Crisis chief executive Matt Downie commented of the upcoming changes this year: “It cannot be understated just how vital this investment in housing benefit will be in helping to both prevent and end homelessness. In recent years, people receiving Housing Benefit have found it increasingly difficult to afford the soaring cost of rents.

"Giving Housing Benefit this crucial boost will make a real difference to people across Great Britain and will relieve some of the pressure facing people on the lowest incomes. We hope this investment will be maintained for the long term, so we can continue with our collective mission to end homelessness for good.”