Hidden in Clause 68 of the Welfare Reform Bill are proposals that will have a profound impact on housing in this country.
The Clause itself is deliberately vague, talking of ‘liabilities’ and ‘rent officer determinations’. It is only by close examination of parliamentary questions and references in the emergency budget that it becomes clear that Clause 68 will be used to introduce the Consumer Price Index (CPI) as the means by which Local Housing Allowance (LHA) is adjusted from 2013.
Much has been made of the impact that switching to CPI will have on benefits such as disability living allowance and job seekers allowance, which until this month were calculated using the more relevant Retail Price Index. But less recognised is the unique impact that linking to CPI will have on Local Housing Allowance.

