The Department for Work and Pensions (DWP) has said 1.6 million people will be around £800 better off as new rules come into force this spring.
The Government department said the boost will benefit some of the poorest families, on either Universal Credit or Housing Benefit. New Local Housing Allowance rates will come into force in April, with a £7bn investment from DWP over the next five years.
Private renters who live in the most expensive areas are set to see the biggest boost, DWP said.
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Subject to the benefits cap, DWP said eligible renters of:
- A four-bedroom property in Bristol could get up to £1,850 per month.
- A two-bedroom property in Greater Glasgow could get up to £850 per month.
- A one-bedroom property in Leeds could get up to £675 per month.
Work and Pensions Secretary Mel Stride said: "Housing costs are the number one expense for families. This £1.2 billion boost to Local Housing Allowance, along with our landmark Back to Work reforms, reflects our fair approach to welfare – helping people into employment while protecting the most vulnerable with unprecedented cost of living support."
The Local Housing Allowance determines the maximum housing support for private renters. It ensures that claimants in the same area with similar situations are entitled to the same maximum support regardless of the rent they pay.
The level of support is based on the area where the person lives and the size of their household.
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