Advertising helps fund Big Issue’s mission to end poverty
Housing

Government scraps cap on housing benefit in social sector

Housing groups welcome Theresa May's decision to not to implement limits on Local Housing Allowance

Theresa May has decided to ditch her government’s plan to cap housing benefit for people in social housing.

The government had intended to impose new limits on housing benefit in the social housing – in line with a cap already faced by tenants in the private sector – from April 2019.

But May said that ministers “will not apply the Local Housing Allowance cap to supported housing…Indeed we will not be implementing it in the wider social rented sector.”

The U-turn was welcomed by Labour, the Lib Dems and leading housing groups.

Advertising helps fund Big Issue’s mission to end poverty
Advertising helps fund Big Issue’s mission to end poverty

It was also cheered by organisations working with homeless people, who had argued the caps should not be applied to those living in supported accommodation.

Some had warned the changes would have meant housing associations not having the funding to build specialist accommodation.

But following May’s decision, the housing and care provider Home Group announced that it is bringing forward a £50 million investment in three new supported housing and health schemes. 

Rachael Byrne, an executive director at Home Group said the government reversal “really puts the whole of the supported and socialhousing sector on a long-term sustainable footing.” 

This will be welcome news for people who are homeless

“This will be welcome news for people who are homeless and other vulnerable groups,” said Dominic Williamson, an executive director of at the charity St Mungo’s.

“This is a step in the right direction but we await next week’s full proposals for supported housing funding with interest.

The government has also announced that it will be publishing a White Paper on the future of funding for supported housing on Tuesday next week.

Advertising helps fund Big Issue’s mission to end poverty

READER-SUPPORTED SINCE 1991

Reader-supported journalism that doesn’t just report problems, it helps solve them.

Recommended for you

View all
Here's what would happen if the UK abolished landlords overnight
Renters angry at no-fault evictions, Renters Reform Bill delay and a lack of rent controls
Landlords

Here's what would happen if the UK abolished landlords overnight

Homeless people needed protecting from hot weather more than ever before in 2025
a homeless man in hot weather
Homelessness

Homeless people needed protecting from hot weather more than ever before in 2025

Hidden crisis of fires ripping through Gypsy and Traveller sites is 'a fatal tragedy waiting to happen'
A burnt down caravan at Ver Meadows
Gypsies and Travellers

Hidden crisis of fires ripping through Gypsy and Traveller sites is 'a fatal tragedy waiting to happen'

Rent controls coming to Scotland as Holyrood passes 'ground-breaking' housing bill
Living Rent campaigners demand rent controls outside Holyrood
Housing

Rent controls coming to Scotland as Holyrood passes 'ground-breaking' housing bill

Reader-supported journalism that doesn’t just report problems, it helps solve them.

Every day, Big Issue digs deeper – speaking up for those society overlooks. Will you help us keep doing this work?