The Department for Work and Pensions has made the Rent Officers (Housing Benefit and Universal Credit Functions) (Modification) Order 2026 (S.I. 2026/5). Signed by Minister of State Stephen Timms on 6 January and laid before Parliament on 8 January, the Order comes into force on 30 January 2026. As published on legislation.gov.uk, it extends to England, Wales and Scotland.
The instrument fixes Local Housing Allowance (LHA) for the 2026 determination year. For every broad rental market area (BRMA) and for every category of dwelling, the LHA to be used in calculations is the allowance that was determined on 31 January 2024. The same reading applies to determinations for both Housing Benefit and the housing costs element of Universal Credit.
Legally, the Order operates by modifying three existing instruments so that, for 2026 purposes, each references the 31 January 2024 figure. These are Schedule 3B to the Rent Officers (Housing Benefit Functions) Order 1997, Schedule 3B to the Rent Officers (Housing Benefit Functions) (Scotland) Order 1997, and Schedule 1 to the Rent Officers (Universal Credit Functions) Order 2013. In practice, rent officers will continue to apply the 2024 allowances to 2026 cases.
LHA caps the portion of rent that can be met by Housing Benefit or the Universal Credit housing costs element, with rates varying by BRMA and by property size. By holding 2026 to the 31 January 2024 allowances, awards already limited by LHA will not rise through the 2026 annual cycle, though entitlement can still change for reasons such as household composition or income.
For local authorities and their software providers, the effect is administrative continuity. Parameter files for 2026 should reflect the 31 January 2024 LHA amounts for each BRMA and bedroom category. Advisers and claimants modelling entitlement during 2026 should reference the published 2024 LHA figures for their area and dwelling size.
The Order applies across Great Britain only. Northern Ireland operates separate rent officer and Housing Benefit arrangements and is therefore not covered. The powers relied upon are section 122(1) and 122(6)(b) of the Housing Act 1996, which enable the Secretary of State to modify rent officers’ functions by secondary legislation.
According to the Explanatory Note, no full impact assessment has been produced because no, or no significant, impact on the private, voluntary or public sector is foreseen. The approach continues the recent practice of referencing the 31 January 2024 allowances in subsequent years’ determinations.
For households, the practical consequence is that any shortfall between contractual rent and the relevant LHA in 2026 must still be met from other income or, where eligible and subject to local discretion, supported through a Discretionary Housing Payment. Landlords and agents should be aware that the maximum eligible rent for benefit purposes remains aligned to the 2024 allowance throughout 2026.