When Will Local Housing Allowance Increase in the UK? (2025 Guide)

If you rely on housing benefit or Universal Credit to help cover your rent, you’ve likely asked: “When will Local Housing Allowance (LHA) increase?” With rent prices rising and cost-of-living pressures mounting, understanding LHA changes in 2025 is more important than ever.

In this guide, we break down what LHA is, how it’s set, when you can expect an increase, and how it affects different groups — including private tenants, single parents, disabled tenants, and Universal Credit claimants.

🧾 What Is Local Housing Allowance (LHA)?

Local Housing Allowance (LHA) is the maximum amount you can receive for rent if you’re renting from a private landlord and claiming Housing Benefit or the housing element of Universal Credit. It’s based on:

  • Your location (postcode area)
  • The number of bedrooms you’re entitled to
  • Current local rental prices

Local Housing Allowance (LHA) Calculator (UK):

How and When Is LHA Reviewed?

LHA rates are usually reviewed every April by the Department for Work and Pensions (DWP). However, in recent years, LHA rates have often been frozen — meaning they haven’t changed despite rising rents.

  • The next local housing allowance review is expected in April 2025
  • Any changes will be influenced by market rents and budget announcements
  • The DWP housing allowance rates are published publicly

Will Local Housing Allowance Increase in 2025?

The government has confirmed an increase in LHA rates starting April 2025, following a freeze that had been in place since 2020 for many areas. The move is designed to align support with rising private rents.

What’s expected:

  • LHA rates will match the 30th percentile of local rental prices
  • This will benefit over 1.6 million low-income households
  • London, Manchester, Birmingham, and other high-rent areas will see noticeable increases

Regional Variations: Where Are Increases Happening?

LHA rates vary by location. For example:

RegionOld Weekly LHA (1-bed)April 2025 LHA (1-bed est.)
London (Inner East)£260£290
Manchester£138£150
Glasgow£114£125
Birmingham£137£147
Cardiff£112£122

Who Will Benefit from the LHA Increase?

✅ For Single Parents

  • Increased LHA will help cover larger homes
  • More support for families with 2–3 children
  • 🔑 Local Housing Allowance for single parents

✅ For Disabled Tenants

  • Higher rates ease the burden for adapted or suitable housing
  • Can be combined with disability premiums
  • 🔑 LHA increase for disabled tenants

✅ For Low-Income Families

  • LHA helps bridge the rent-income gap
  • Better alignment with actual rental prices
  • 🔑 rent support for low income families

✅ For Universal Credit Claimants

  • Your housing element will increase automatically
  • Check your Universal Credit journal for updates
  • 🔑 housing benefit for universal credit claimants

How to Check Your LHA Rate

Use the LHA Direct website to check your rate based on:

  • Your postcode
  • Number of bedrooms you’re entitled to

You can also use a bedroom rate calculator to see what you qualify for.

What If LHA Doesn’t Cover Your Full Rent

Even with the 2025 increase, some tenants will still face a shortfall between their rent and the LHA amount. In this case:

  • Apply for a Discretionary Housing Payment (DHP) through your local council
  • Look for local welfare support schemes
  • Speak to a housing advisor or support charity

🧠 FAQs

💬 Will my housing benefit go up automatically?

Yes — if you’re eligible for more under the new LHA rates, your Universal Credit housing element or Housing Benefit will adjust after April 2025.

💬 How often is LHA reviewed?

Usually annually, in April. But increases depend on government policy and budget reviews.

💬 What if I live in shared accommodation?

You’ll get the shared accommodation rate (for most under 35s), unless you’re exempt due to disability or children.

📝 Conclusion

With rising rent costs, the increase in Local Housing Allowance in April 2025 is welcome news for millions of low-income households across the UK. Whether you’re a private tenant, parent, or Universal Credit recipient, it’s crucial to check your updated rate and explore additional support if needed.

Stay informed, and don’t miss out on the housing assistance you’re entitled to.


✅ Related Searches People Also Ask

  • When is LHA going up in 2025?
  • How much LHA will I get on Universal Credit?
  • Can I claim extra if LHA doesn’t cover my rent?

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