Theresa May revealed a U-turn on housing benefits today as she announced she was cancelling a cap on payments to tenants in the social rented sector.
From April 2019 the amount of housing benefit paid to tenants in social housing was due to be capped at the same levels as that paid to people renting in the private sector.
Mrs May was greeted with cheers as she revealed the climb down at Prime Minister’s Questions.
Supporting housing providers had slammed the policy, warning it could make them unviable, putting thousands of elderly and vulnerable people living in such accommodation at risk.
Theresa May (pictured at the Commons Despatch Box today) revealed a U-turn on housing benefits today as she announced she was cancelling a cap on payments to tenants in the social rented sector
Mrs May told the Commons the Government would publish full details of its plans on Tuesday next week.
She added: ‘But I can also say today that as part of our response to the review, we will not apply the local housing allowance cap to supported housing.
‘Indeed, we will not be implementing it in the wider social rented sector, and the full details will be made available when we publish our response to the consultation.’
Mrs May added: ‘This is something that we’ve been looking at very closely over the past year since in fact (First Secretary Damian Green) commissioned work on this, when he was work and pensions secretary in September last year.
‘I can confirm that we will be publishing our response to that consultation on Tuesday October 31.
‘It will look at a wide range of issues.
‘We need to ensure the funding model is right, so that all providers of supported housing actually are able to access funding effectively.
‘We need to look at issues such as the significant increase in service charges that have taken place recently, making sure that we’re looking at cost control in the sector.’
Mrs May was greeted with cheers as she revealed the climb down at Prime Minister’s Questions (pictured)
John Healey, the shadow housing minister, said: ‘Once again, Labour is winning the arguments and making the running on Government policy.
‘Ahead of our opposition day debate later today, the Government has given ground, but the devil will be in the detail, and the funding.
‘Labour will continue to press the Government to protect the long-term future and funding of supported housing.’
David Orr, chief executive of the National Housing Federation, wrote on Twitter: ‘The PMs decision to remove the LHA (local housing allowance) cap for all social housing is great news. Things really are beginning to change.’
Shadow housing minister John Healey welcomed the U-turn as proof Labour was ‘making the running’ on Government policy
Local housing allowance has many of the same rules as housing benefit, but there are some extra rules that limit the amount of help people can get for a private rented home.
There had been concerns plans to cap housing benefit could lead to rent arrears and increase the risks of people becoming homeless.
Brian Dow, director of external affairs at Rethink Mental Illness, added: ‘We’re pleased to see that the Government has listened to our campaigning, and the wider sector, and dropped the potentially disastrous plan to cap funding for supported housing.
‘We look forward to seeing more detail on the new funding plan and working with the Government to find a solution that ensures everyone can afford the support they need.’