from the times ....

'Landlords are exploiting high housing benefit rates set by the Government to push up rents in the private sector, council leaders claim today. They argue that private landlords set their rents at £1 or £2 below the maximum allowed by the Department for Work and Pensions, which has led to rents of almost £2,000 a week ... Six London councils have today sent a letter to Yvette Cooper, the Work and Pensions Secretary, calling for more radical reform which would allow authorities flexibility to negotiate more 'common sense' rates.

The current rules allow unemployed families on housing benefit to live in mansions at the taxpayer’s expense. There is little pressure for these families to move or work, as under current benefit laws they would quickly lose much of their generous housing payments — another anomaly the Government is trying to address. At the same time, some low-income working families have been waiting for years to move from tiny council flats to larger accommodation. The contrast is causing increasing resentment in the social sector.'

Hmm...

Is this timing coincidental, given the HB changes being flagged for the budget, or might it allow the Chancellor to respond to LA concerns?

Considering that decision in Sheffield where, if I remember correctly, the RO's determination was eventually upheld in using the entire City as a locality then surely this is a natural consequence.