More than one million renters are set for an average cash boost of £800 a year, the government has announced.

The boost in Local Housing Allowance (LHA) will come into effect in April and will see 1.6 million private renters on either Universal Credit or Housing Benefit better off.

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.”

Minister for Disabled People, Health and Work Mims Davies added: “Keeping inflation down and supporting people to stay and progress in work is the best way we can bolster families’ finances and help them progress, but we know some are still struggling which is why we are providing this important extra help.

“This key boost to our housing support will see average renters around £800 better off. It is just one crucial part of our £104 billion package to help the most vulnerable which also includes an increase to benefits in line with inflation and our latest series of cost-of-living payments.”

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.  

Subject to the benefits cap, 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.

Crisis Chief Executive, Matt Downie said: “It cannot be understated just how vital this investment in housing benefit will be in helping to both prevent and end homelessness.

“In recent years, people receiving housing benefit have found it increasingly difficult to afford the soaring cost of rents. Giving housing benefit this crucial boost will make a real difference to people across Great Britain and will relieve some of the pressure facing people on the lowest incomes.

“We hope this investment will be maintained for the long term, so we can continue with our collective mission to end homelessness for good.”