Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: December 9, 2024

Purpose: This proposal seeks to align temporary accommodation rental charges with 100% of the current Local Housing Allowance (LHA) rates, effective from April 2025. Currently, rental rates are based on 90% of the 2011 LHA rates, which are significantly below market rents. This discrepancy creates an unfair situation for households transitioning to private rented accommodation, where they face substantial rent increases. Aligning the rent levels to current LHA rates will ensure fairness and consistency, while better preparing households for future private renting. It will also generate £1-2 million in additional revenue annually, stabilising the council’s General Fund, which is under pressure due to the rising costs of providing temporary accommodation. Approximately 84% of households will not be financially impacted, as their rent increase will be covered by housing benefit. Support will be provided for these households to minimise disruption.

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