Committee publication · Correspondence · 22 April 2026
Correspondence to and from the Secretary of State for Work and Pensions, relating to the evidence session on 25 February, dated 17 March and 14 April 2026
From: Welsh Affairs Committee
Inquiry: Housing and homelessness in Wales
Summary
Correspondence between the Welsh Affairs Committee chair and the Secretary of State for Work and Pensions concerning the impact of UK Government housing policy on homelessness in Wales. The Committee, following a February evidence session, pressed the government to raise Local Housing Allowance (LHA) rates to the 30th percentile or higher for 2026–27, citing witness testimony that LHA is a key factor trapping people in temporary accommodation. The Secretary of State declined, citing fiscal constraints and noting LHA was already increased to the 30th percentile in April 2024.
Key findings
- Welsh Affairs Committee heard evidence that approximately 10,500 people are in temporary accommodation in Wales, with severe and potentially lifelong impacts.
- Multiple witnesses (Cymorth Cymru, Shelter Cymru, Crisis) identified raising LHA as the single most impactful UK Government policy lever to reduce homelessness in Wales.
- Dr Steffan Evans (Bevan Foundation) presented data showing private landlords earn more from Airbnb in 10 weeks than a year of LHA-backed rent in most Welsh authorities, demonstrating LHA's effect on housing supply behaviour.
- Secretary of State confirmed LHA rates will remain frozen at April 2024 levels (30th percentile) for 2026–27, citing the challenging fiscal context and the £37 billion annual DWP housing support budget.
- Government highlighted the two-child limit removal (expected to benefit 69,000 Welsh children) and the forthcoming Housing Benefit Work Incentive as complementary measures, and committed to keeping LHA under review.
Government position
Rejects further LHA rate increase for 2026–27. Acknowledges homelessness concerns but positions the April 2024 increase to the 30th percentile (£7 billion over five years) as sufficient; cites fiscal constraints, the £37 billion existing housing support budget, and availability of Discretionary Housing Payments as alternatives. Emphasizes broader anti-poverty measures (two-child limit removal) and work incentives as complementary policy tools.
Tone
AdversarialTopics
Key actors
Ruth Jones MP, Pat McFadden MP, Katie Dalton (Cymorth Cymru), Lauren Caley (Shelter Cymru), Debbie Thomas (Crisis), Dr Steffan Evans (Bevan Foundation), Florence Eshalomi, Debbie Abrahams
Notable line
“Local housing allowance is one of the key factors that keeps people in temporary accommodation. They are simply unable to leave.”
Key Quotes
“Local housing allowance is one of the key factors that keeps people in temporary accommodation. They are simply unable to leave. It traps far too many people.”
“People who have been evicted from a rented property make up a significant portion of the homelessness presentation. In theory, it would mean people staying in the homes they already have.”
“Restoring LHA to cover the cost of rent came up as the thing that would make the biggest difference in dropping homelessness levels.”
“… in all Welsh local authorities bar Torfaen you would make more money in 10 weeks on Airbnb than you would in a whole year renting to someone on LHA”
“… these were increased to the 30th percentile in April 2024, representing an additional £7 billion investment over five years. At the Autumn Budget, I confirmed that LHA rates will not be increased for 2026/27.”
“LHA plays an important role in setting the maximum level of housing support for private renters, but it is not designed to meet every rent in every area.”
Source · parliament.uk record ↗