If the government increase the LHA rates, then the Regulations^ state that the new LHA rates take effect for Assessment Periods beginning on or after the 'relevant Monday' - which is defined as the first Monday in the Tax Year after the new rates take effect.
^Article 4, The Rent Officers (Universal Credit Functions) Order 2013 -
click here.The last time the LHA rates increased was in April 2024, the new LHA rates took effect from Monday 1st April.
Meaning that the DWP will use those new rates when assessing the Housing Costs Element in Assessment Periods starting on or after 8th April 2024.
Example:
Cerys is a UC claimant with a Monthly Assessment Period running from 3rd to 2nd of each month. She lives in private rented accommodation. Her rent is £900 a month, but her LHA rate is £800 a month and so this is the figure the DWP have been using when working out her Housing Costs Element.
The LHA rates increased on 1st April 2024 - her LHA rate increased to £890 a month.
Her first Assessment Period beginning on or after 8th April is the one beginning on 3rd May. So when the DWP assess her award at the end of that Assessment Period i.e. on 2nd June it will be based on the new higher LHA figure.