The causes of homelessness are multi-faceted and often complex and they interact dynamically DWP continues to work closely with MHCLG on interactions with homelessness.

The Secretary of State for Work and Pensions reviewed Local Housing Allowance (LHA) at the 2025 Autumn Budget and announced that rates would be maintained at their current levels for 2026/27. A range of factors, such as rent levels across the country, were considered against the fiscal context, including the level of housing support that Government provides overall.

Renters receiving housing support who face a shortfall in meeting their rent costs can apply for discretionary support from local authorities via the Crisis and Resilience Fund Housing Payments in England and Discretionary Housing Payments in Wales.

The Consumer Prices Index (CPI) estimates how the prices of goods and services bought by households rise or fall and is used as an indication of inflation in Universal Credit uprating. Last year, The Secretary of State increased most working age benefits across Great Britain for 2026/27 by 3.8% in line with CPI in the year to September 2025.

Local Housing Allowance (LHA) rates are reviewed each year at Autumn Budget.

In his Written Ministerial Statement following Autumn Budget, the Secretary of State for Work and Pensions confirmed that LHA rates will remain at current levels in 2026/27. He considered a range of factors, such as rental levels across Great Britain and the challenging fiscal context.

Written statements - Written questions, answers and statements - UK Parliament

For those renters who require additional support to meet a shortfall in rent costs, Discretionary Housing Payments are available from local authorities.

My right hon. Friend the Secretary of State confirmed in his Written Ministerial Statement (HCWS1101) that Local Housing Allowance rates and the benefit cap will not be increased for 2026-27. He considered a range of factors, including the rentals levels across Great Britain, the wider fiscal context and welfare priorities. This included the decision to prioritise removing the two child limit, which will lift 450k children out of poverty.

Responsibility for housing and homelessness is devolved to the Welsh Government, while social security is reserved to the UK Government.

Discretionary Housing Payments are available from local authorities for those who face a shortfall in meeting their housing costs.

The Social Security Administration Act 1992 requires the Secretary of State for Work and Pensions to review State pension and benefit rates each year to see if they have retained their value in relation to the general level of prices or earnings. Where the relevant rates have not retained their value, legislation provides that the Secretary of State is required to, or in some instances may, up-rate their value. Following this review, some rates are increased in line with statutory minima, and others are increased subject to the Secretary of State’s discretion.

The new and basic State Pensions, and the Standard Minimum Guarantee in Pension Credit (which replaced tax credits for most people above State Pension age on 5 April 2025). must be increased at least in line with the growth in earnings. In practice, the new and basic State Pensions are subject to our commitment for this Parliament to the triple lock of the highest of earnings growth, the increase in prices, or 2.5%

Additional-needs disability benefits such as Personal Independence Payment, Carer’s Allowance, and Additional Pension must be increased at least in line with the increase in prices. By convention, the measure used for this is the increase in the Consumer Prices Index (CPI) in the year to September.

For the rates of most other benefits, including Universal Credit (which replaced tax credits for people below State Pension age on 5 April 2025), once the Secretary of State has concluded her review of the increase in the general level of prices, she may decide to increase them. The Office for Budgetary Responsibility currently assumes that she will do so in line with the increase in CPI in the year to September. However, the Universal Credit and Personal Independence Payment Bill has been introduced into Parliament and subject to parliamentary approval, this will alter the standard parameters of Secretary of State's annual review.

The Secretary of State already has an annual Statutory duty to conduct a review of benefits and State pension rates, including Universal Credit, to determine whether they have retained their value in relation to the general level of prices and/or earnings. This is a well-established process that applies more widely than just Universal Credit and is therefore outside the scope of the review.

This Government uprated benefit rates for 2025/26 in line with inflation, with 5.7 million Universal Credit households forecast to gain by an average of £150 annually. We will also improve the adequacy of the Universal Credit standard allowance with the first sustained above inflation rise in the basic rate of Universal Credit since it was introduced, subject to parliamentary approval as part of our welfare reform.

There has been no assessment on the rules relating to Universal Credit’s Transitional Protection.

Transitional Protection protects benefit entitlement levels at the point of moving to Universal Credit. It is a temporary measure to maintain benefit entitlement levels so that customers will have time to adjust to the new benefit system.

Transitional Protection is not intended to provide indefinite financial protection. The Transitional Element will erode with increases in other UC elements, except childcare costs, so to gradually align the customers UC award with those of new UC customers who were not managed migrated, in the same circumstances. This includes increases due to the annual uprating of benefits, and DWP is not seeking to change this or weaken this key principle of Transitional Protection.

Employment and Support Allowance (ESA) is a single benefit with two strands, contribution-based ESA, ESA C (which was rebadged New Style ESA (NS ESA)), and income-related ESA (ESA IR).

Legacy ESA is made up of a contributory (ESA C) and income-related strand (ESA IR).

​New claims to legacy ESA (i.e. ESA C and ESA IR) are no longer available. Only new claims to NS ESA can be made.

The Secretary of State has an annual Statutory duty to conduct a review of benefits and State pension rates to determine whether they have retained their value in relation to the general level of prices and/or earnings. The review will take place in the Autumn as is the convention.

The Pathways to Work Green Paper included proposals for the future rates of Employment and Support Allowance.

The impacts referenced in the previous answer were determined using a wide variety of metrics, data and analysis. These included:

• Current and past rental data supplied by the Valuation Office Agency, Rent Officers Scotland, and Rent Officers Wales;
• Analysis of current and past DWP administrative data on recipient households from a number of angles, including policy simulation modelling: and
• Forecasts on benefit caseloads and related matters.

As covered in the previous answer, the causes of homelessness are multi-faceted and interact dynamically. This makes it very difficult to isolate the relative importance of individual factors such as individual benefit rates. But interactions with key measures such as Temporary Accommodation were considered with input from the Ministry for Housing, Communities and Local Government.

At Autumn Budget the Government prioritised a downpayment on poverty, by introducing a Fair Payment Rate for Universal Credit (UC) customers with deductions to retain more of their benefit award. We have invested £1bn in extending the Household Support Fund and maintaining Discretionary Housing Payments (DHPs) at current levels (including Barnett impacts) for 2025/26.

We continue to work across Government on the development of the Homelessness and Rough Sleeping strategy in England. Housing and homelessness policy is devolved to Wales.

Any future decisions on LHA policy will be taken in the context of the Government’s missions, goals on housing and the fiscal context.

DHPs are available from local authorities and can be paid to those entitled to Housing Benefit or UC who face a shortfall in meeting their housing costs.

The impacts referenced in the previous answer were determined using a wide variety of metrics, data and analysis. These included:

• Current and past rental data supplied by the Valuation Office Agency, Rent Officers Scotland, and Rent Officers Wales;
• Analysis of current and past DWP administrative data on recipient households from a number of angles, including policy simulation modelling: and
• Forecasts on benefit caseloads and related matters.

As covered in the previous answer, the causes of homelessness are multi-faceted and interact dynamically. This makes it very difficult to isolate the relative importance of individual factors such as individual benefit rates. But interactions with key measures such as Temporary Accommodation were considered with input from the Ministry for Housing, Communities and Local Government.

At Autumn Budget the Government prioritised a downpayment on poverty, by introducing a Fair Payment Rate for Universal Credit (UC) customers with deductions to retain more of their benefit award. We have invested £1bn in extending the Household Support Fund and maintaining Discretionary Housing Payments (DHPs) at current levels (including Barnett impacts) for 2025/26.

We continue to work across Government on the development of the Homelessness and Rough \Sleeping strategy in England. Housing and homelessness policy is devolved to Wales.

Any future decisions on LHA policy will be taken in the context of the Government’s missions, goals on housing and the fiscal context.

DHPs are available from local authorities and can be paid to those entitled to Housing Benefit or Universal Credit who face a shortfall in meeting their housing costs.

The causes of homelessness are multi-faceted and often complex, they interact dynamically making it very difficult to isolate the relative importance of individual factors. Responsibility for housing and homelessness is devolved to the Welsh Government, while social security is reserved to the UK Government.

At last year’s Autumn Budget, the Secretary of State’s decision to maintain Local Housing Allowance (LHA) at current levels for 2025/26 was taken after a range of factors were considered, including rental data, the impacts of LHA rates, the fact that rates were increased in April 2024, and the wider fiscal context. The April 2024 one-year LHA increase cost an additional £1.2bn in 2024/25, and approximately £7bn over 5 years.

Any future decisions on LHA policy will be taken in the context of the Government’s missions, goals on housing, and the fiscal context.

For those who need further support, Discretionary Housing Payments (DHPs) are available from local authorities. DHPs can be paid to those entitled to Housing Benefit or Universal Credit who face a shortfall in meeting their housing costs

We continue to keep the rates used for Housing Benefit subsidy under review and are working closely with MHCLG and the Inter-Ministerial Group on Homelessness and Rough Sleeping to explore the impacts of subsidy rates on local authorities.

The Government will prioritise the best way to achieve its mission and goals within the current challenging fiscal situation at the appropriate fiscal event.

The Child Poverty Taskforce is exploring how we can use every available lever across Government to reduce child poverty before publishing a strategy which will deliver lasting change.

The Local Housing Allowance (LHA) was introduced in 2008 and determines the maximum housing support for tenants in the private rented sector. Claimants in similar circumstances living in the same area are entitled to the same maximum rent allowance regardless of the contractual rent paid. LHA rates do not cover all rents in all areas.

In April 2024, LHA rates were restored at the 30^th percentile of local market rents at a cost of approximately £7bn over 5 years.

In relation to LHA rates remaining at current levels for 2025/26, the Government has had to take difficult decisions at Autumn Budget to address the challenging fiscal context. For LHA a range of factors were considered, including rental data, the impacts of LHA rates, the fact that rates were increased in April, and the wider fiscal context.

Decisions on LHA rates for future years will be taken in the context of the Government’s missions, housing priorities, and the fiscal context.

For those who need further support, Discretionary Housing Payments (DHPs) are available from local authorities. DHPs can be paid to those entitled to housing support who face a shortfall in meeting their housing costs.

The estimated number of individuals in families benefitting from the uprating of benefits in the financial year 2025/26 in each region of the UK and the UK overall can be found here Benefit uprating: estimated number and type of families and individuals in families benefitting from the uprating of benefits in financial year 2025 to 2026 - GOV.UK (www.gov.uk)

An assessment cannot be made at a constituency level however official statistics for the number of people in receipt of Employment and Support Allowance, Jobseeker’s Allowance, Income Support, Pension Credit, Universal Credit and other benefits uprated at the Budget are published regularly on Stat-Xplore, with breakdowns available by various geographical areas, including Westminster parliamentary constituency.

The latest statistics are available to September 2024 for Universal Credit, and February 2024 for the other benefits listed above. Universal Credit statistics to October 2024 are due to be published on 12 November 2024, and for the other benefits to May 2024 on 28 November 2024. In February 2024 the Accredited Official Statistics for State Pension were suspended due to issues with processing data from the new Get Your State Pension (GYSP) system. The Accredited Official Statistics for State Pension will be reinstated in the release of statistics on 28 November 2024.

Users can log in or access Stat-Xplore as a guest and, if needed, can access guidance on how to extract the information required. There is also a Universal Credit Official Statistics: Stat-Xplore user guide.

Many people will care for friends or family members at some point in their life, and it is right that we recognise the vitally important role of unpaid carers. That is why we are expecting to spend around £4.2 billion this year to support them through Carer’s Allowance.

The principal purpose of Carer's Allowance is to provide a measure of financial support and recognition for people who are not able to work full-time because of their caring responsibilities. It was never intended to be a carer's wage nor a payment for the services of caring and is, therefore, not comparable with the National Living Wage.

The Secretary of State undertakes a statutory annual review of benefit and pensions, and the level of Carer’s Allowance is protected by Up-rating it each year in line with the Consumer Prices Index (CPI).

In addition to Carer’s Allowance, carers on low incomes can claim income-related benefits, such as Universal Credit and Pension Credit. These benefits can be paid to carers at a higher rate than those without caring responsibilities through the carer element and the additional amount for carers respectively.

The Secretary of State undertakes a statutory annual review of benefit and pensions, and the value of Carer’s Allowance is protected by up-rating it each year in line with the Consumer Prices Index (CPI).

This Government will keep eligibility criteria and processes of Carer’s Allowance under review, to see if it is meeting its objectives.

Introducing a taper in Carer’s Allowance would significantly complicate the benefit with awards having to be manually adjusted on a weekly basis for some recipients declaring earnings. This would add to administrative costs and potentially increase fraud and error. Those also receiving Universal Credit would need to have that adjusted if their payment of Carer’s Allowance changed because of an earnings taper rate.

A taper could therefore only be introduced following significant changes to the IT system that supports payment of Carer’s Allowance.