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"We will not apply the LHA cap to supported housing" - Orbit welcomes government announcement

We welcome the Prime Minister's announcement this morning to 'no longer apply the Local Housing Allowance cap to supported housing'.

Paul Richards, executive director of customer services at Orbit said:

“I am delighted to hear the reassuring news that the LHA cap will no longer apply to supported housing nor indeed the wider social housing sector.  

On current assumptions, around £2.5m of Orbit’s income per annum from our supported and extra care provision is ‘at risk’, with an average shortfall of £1,400 per customer. I’m pleased to say that coupled with the recent rent settlement announcement, this support from government, will help housing associations like us free up more capacity to develop much needed homes. We can now begin to rethink our supported housing development programme and plan for the future.

I would like to give special thanks to Peter Aldous MP and the National Housing Federation, who have been tireless advocates of supported housing, securing Westminster Hall debates on the issue, as well as cross party support.

While we await further detail on this and of the government’s proposed funding model, I think we can be sure that housing is at the top of this government’s agenda. We still have much to do but I am hopeful that the forthcoming budget will build on recent announcements to tackle this country’s housing crisis head on.”