The Government recognises the cost of living pressures that tenants are facing, and that paying rent is likely to be a tenant’s biggest monthly expense. The level of private sector rents is not directly a matter for Government, however, we are taking steps to increase housebuilding to help create a more sustainable and affordable housing market over the long term. The Government is on track to meet its manifesto commitment to deliver a million homes over this Parliament.

The Government also welcomes new institutional investment in the private rented sector. The Build to Rent sector has built over 100,000 new homes over the past 13 years and they continue to play a part in increasing the supply of homes in the private rented sector.

I refer the Hon. Member to the answer I gave to Question UIN 102972 on 8 December 2022.

The Local Housing Allowance (LHA) determines the maximum financial support available for renters in the private rented sector who are in receipt of housing benefit or the housing element of universal credit. LHA rates are not intended to meet all rents in all areas.

For Great Britain in May 2022, 55% of the households on LHA had rents higher than the LHA rates. For these households the average gap was £146 per month.

In 2020 LHA rates were raised to the 30th percentile, a significant investment of almost £1 billion, we have maintained the increase since then so that everyone who benefited from the increase continues to do so.

We recognise that rents are increasing but the challenging fiscal environment means that difficult decisions were necessary to ensure support is targeted effectively. The Chancellor announced at Autumn Statement a package of targeted support worth £26 billion.

To protect the most vulnerable, working age and disability benefits will be increased in line with inflation for 2023-24, increasing expenditure by £11 billion in 23/24. In addition, to ensure that households will see an increase in their benefits following uprating – the benefit cap will also be increased in line with CPI (10.1%) in April 2023.

For those who require extra support, the government is extending the Household Support Fund providing an additional £1bn to help with the cost of household essentials, for the 2023-24 financial year, on top of what we have already provided since October 2021, bringing total funding for this support to £2.5 billion.

For those who require additional support with housing costs, Discretionary Housing Payments (DHPs) are available. Since 2011 we have provided nearly £1.5 billion in funding for DHPs.

It is for landlords and tenants to agree the amount of rent that should be charged and how much should be paid in advance, according to individual circumstances. We do not expect it to be the norm that landlords ask for multiple months of rent in advance.

The Government took action through the Tenant Fees Act to prohibit rent from being 'frontloaded' at the outset of a tenancy. This prevents a situation where tenants are charged higher rent in place of letting fees.

The Act means that a landlord cannot require a tenant to pay a higher amount for one or several months then a lower amount after this.

We have not assessed the impact of the practice of multiple months of rent being paid upfront, but will continue to monitor this closely.

This Government has provided an unprecedented package of support to renters, and it has made a real impact. The vast majority - 91% - of renters are up to date with their rent.

However, we have kept in place longer notice periods of four months until the end of September, giving people who need it the time to agree a way forward with their landlord.

For renters who require additional support, financial measures remain in place. We have made available £140 million this year for local councils to help people pay their rent through Discretionary Housing Payments, and we extended the Job Retention Scheme and the £20 weekly uplift in Universal Credit until the end of September.

The UK Government has provided an unprecedented package of financial support which is available to tenants.

The Coronavirus Job Retention Scheme and £20 per week uplift in Universal Credit are in place until the end of September helping renters to continue paying their rent. Local housing allowance rates have been maintained at their increased level in cash terms in 2021/22, meaning claimants renting in the private rented sector continue to benefit from the significant increase in the local housing allowance rates applied in April 2020. For those who require additional support, Discretionary Housing Payments (DHP) are available. For 2021-22 the Government has made £140 million available in DHP funding, building on the £180 million provided last year.

Renters will continue to benefit from longer notice periods, giving them more time to make alternative arrangements. As of 1 June, until at least 30 September, notice periods will be at least 4 months except in the most egregious cases.

This Government has provided an unprecedented package of support to renters, and it has made a real impact. The vast majority - 91% - of renters are up to date with their rent.

However, we have kept in place longer notice periods of four months until the end of September, giving people who need it the time to agree a way forward with their landlord.

For renters who require additional support, financial measures remain in place. We have made available £140 million this year for local councils to help people pay their rent through Discretionary Housing Payments, and we extended the Job Retention Scheme and the £20 weekly uplift in Universal Credit until the end of September.

Universal Credit claimants can apply for a Discretionary Housing Payments from their local authority if they need additional support to meet housing costs and over £1 billion has been provided to Local Authorities since 2011 to help the most vulnerable claimants.

We have provided £180m in Discretionary Housing Payment funding to Local Authorities to support vulnerable claimants with housing costs in the private and social rented sector in England and Wales for 2020/21. This includes an extra £40m as announced last year at the spending round.

The Government has already moved to support residential renters by ensuring landlords are unable to start eviction proceedings for at least a three-month period; this now applies to businesses renting commercial properties.

The Government is also providing £20 billion of business rates support and grant funding to help the most affected firms manage their cashflow through this period, including: giving retail, hospitality and leisure businesses in England a 100% business rates holiday for the next 12 months; providing grants of £10,000 to small businesses eligible for Small Business Rate Relief, and; providing further £25,000 grants to retail, hospitality and leisure businesses operating from premises with a rateable value over £15,000 and below £51,000.

SMEs will also be able to access the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million through the British Business Bank, backed by an 80% government guarantee.

For larger firms, there is a new lending facility from the Bank of England to help support liquidity, helping them bridge coronavirus disruption to their cash flows through loans.

Finally, the HMRC Time To Pay Scheme is in place for all businesses and self-employed people in financial distress to provide support with their tax affairs.

Local Housing Allowance (LHA) rates form part of the Universal Credit housing costs calculation for households in the private rented sector. This calculation is based on either the total amount of rent and service charges they pay, or the applicable LHA rate - whichever is lowest, less any deductions for housing costs contributions for any relevant non-dependents living in the claimant’s home.

LHA rates are usually considered annually with any changes to LHA rates effective from April each year. From April 2020 LHA rates will be increased by CPI.

For claimants living in the Private Rented Sector, the housing costs calculation is based on either the total amount of rent and service charges they pay, or the applicable Local Housing Allowance (LHA) rate - whichever is lowest, less any deductions for housing costs contributions for any relevant non-dependents living in the claimant’s home.

Initial analytical work we have carried out with a single housing provider suggests that many tenants are arriving on Universal Credit with pre-existing rent arrears, supporting research carried out by the National Federation of ALMOs which shows over three quarters of their tenants come onto Universal Credit with pre-existing rent arrears. It also shows that arrears tend to increase prior to making a claim for Universal Credit, and that Universal Credit actually appears to be helping to clear arrears over time. We are currently extending this analysis to include a number of housing providers. It will be published when completed.

The Department encourages all Universal Credit claimants to actively consider how best to manage their personal budget which includes making their own rent payments to landlords, with additional advice and support available from work coaches and case managers where needed. We regularly engage with a range of stakeholders, including landlords, to ensure we understand concerns which helps us to design improvements to Universal Credit.

Alternative Payment Arrangements (APAs), such as a managed payment to landlord (MPTL), are available to enable the housing costs element to be paid directly to the landlord if the tenant is likely to have difficulty in managing their rent payments or is in rent arrears. APAs will only be considered where a lack of financial capability poses a risk to the claimant, or their family, and the decision to implement one is assessed on a case by case basis.

The Department issues a schedule of payments to Social Rented Sector (SRS) landlords, and our Third Party Creditor system - currently used to pay SRS landlords - uses a 28-day payment cycle. We are currently working with a range of landlords to design, develop and test a better services with the intention of having a solution in place by the end of this year.

I refer the hon Member to the reply to Question 181577 on 29 October.