More than 1.1 million low-income families in rented homes face a “cost of housing” crunch without action from John Healey in next month’s budget, the Resolution Foundation thinktank has said.
In a new report, Saving Private Renters, the thinktank found that rising rents since then have led to a widening gap between what families claiming LHA can afford, and the realities of the market.
Relinking LHA to rents would cost £2bn a year by the end of this parliament in 2029-30.
A chorus of charities and campaigners have called for the restoration of the link, including Crisis, the Joseph Rowntree Foundation and Citizens Advice.
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Thinktank calls on chancellor to end housing allowance freeze with typical two-bedroom household facing £158 week shortfall amid rent rises.
More than 1.1 million low-income families in rented homes face a “cost of housing” crunch without action from John Healey in next month’s budget, the Resolution Foundation thinktank has said.
Local housing allowance has been frozen in cash terms since autumn 2024.
In a new report, Saving Private Renters, the thinktank found that rising rents since then have led to a widening gap between what families claiming LHA can afford, and the realities of the market.
The Resolution Foundation rejects the suggestion that relinking LHA with local conditions would mainly benefit private landlords, by driving up rents.
By analysing previous changes in LHA, it finds that 90p of every £1 tends to fall to tenants, instead of feeding through into price changes.
Relinking LHA to rents would cost £2bn a year by the end of this parliament in 2029-30. The Resolution Foundation suggests funding that change by increasing the “taper rate” at which universal credit (UC) is withdrawn as recipients’ income rises.
A chorus of charities and campaigners have called for the restoration of the link, including Crisis, the Joseph Rowntree Foundation and Citizens Advice.
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