The ongoing freeze on Local Housing Allowance (LHA) is making it increasingly difficult for people on low incomes to find a safe, affordable place to call home. As rents continue to rise faster than incomes, more and more people will be left struggling to hang onto their homes.
Local Housing Allowance (LHA) sets the maximum amount of housing benefit that private renters can claim. It’s supposed to make renting more affordable and prevent homelessness by covering at least the cheapest 30% of rental homes in an area.
Housing benefits do not automatically rise in line with rents, and a freeze means that they will stay at the same rate for multiple years. So, while rents skyrocket, the amount of financial help someone can claim remains the same.
With housing benefits no longer reflecting the real cost of renting, tenants are left struggling to cover their rent payments.
After years of freezes by successive governments, currently only 2.7% of homes in Great Britain would be affordable for people relying on housing benefits to move into today.
Despite this, the UK Government has decided to freeze LHA again until at least 2026.
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Financial strain
With LHA rates stuck at outdated levels, many people are forced to make up the difference. This can often be at the cost of essentials like food, bills and heating. For some people, this may mean cutting back on meals, going without heating or sending their children to school in clothes that are worn out and too small. Many others may also be pushed into debt just to keep up with rent payments.
Risk of homelessness
A lack of social and affordable homes means those of us on low incomes have no choice but to turn to private renting. When housing benefits fail to keep pace with the cost of renting, it pushes people into financial insecurity and makes it harder for them to find a settled home.
As a result, more and more people are pushed into unsafe and unsuitable temporary accommodation or are forced onto the streets.
Limited housing options
More than half of private renters in receipt of housing benefit are living in poverty after their housing costs have been paid, according to a report by JRF. Shockingly, the report also found that 25% of private renters who rely on LHA are only in poverty due to their housing costs.
Sky high rents not only leave many of us struggling to pay for our current homes, but it also means we have fewer options if we ever need to move. With so few genuinely affordable homes still available, finding somewhere suitable to live can feel almost impossible.
After four years of freezes, the last UK Government briefly increased LHA rates in April 2024. However, this adjustment was short-lived.
The current UK Government has already announced that it will freeze LHA rates again for 2025. With rents continuing to rise, housing benefits have already fallen behind the true cost of rent, putting many of us under growing financial pressure.
The housing benefit freeze is set to remain in place until at least 2026 and will leave many low-income households at greater risk of homelessness.
We refuse to stand by while people are pushed into homelessness because housing benefits no longer cover the cost of rent. Everyone deserves a safe, stable home and we’re fighting to make that a reality.
We’re calling on the UK Government to restore housing benefits to match the true cost of rent.
Join us in calling for change:
The more people who speak out, the more pressure we can put on the government to restore housing benefits and ensure that no one is left without a home.
A future free from homelessness is possible. Together we can make it happen.