Government scraps plans to cap supported housing benefit

Labour seized on the announcement, calling it a “significant U-turn".

Speaking at Prime Minister’s Questions, Theresa May said proposals to cap the Local Housing Allowance, set to be implemented in April 2019, would no longer apply to those living in supported housing. 

This comes ahead of the publication of a major social housing consultation, due to be released next week.

“As part of our response to the review, we will not apply the Local Housing Allowance cap to supported housing,” the Prime Minister told MPs.

"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."

Shadow Housing Secretary John Healey said the climbdown was a result of pressure from Labour on the issue.

“Once again, Labour is winning the arguments and making the running on Government policy," he said.

“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."

While a spokesman for Jeremy Corbyn described the move as a “significant U-turn”.

Liberal Democrat housing spokesperson Wera Hobhouse, added: “This cap would have hit the most vulnerable in our society, including the homeless and victims of domestic violence living in shelters.

“It is right that the Government has now U-turned on this cruel and heartless policy.

"Ministers must now reverse their damaging decision to scrap housing benefit for 18-21s, that risks pushing more young people into homelessness."

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