Local Housing Allowance far short of rental costs, claim campaigning charities

Local Housing Allowance far short of rental costs, claim campaigning charities


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Charities have used the latest homelessness figures to step up their campaign for the government to un-freeze Local Housing Allowance.

The Independent Age charity says a record number of older people in England are facing homelessness. Some 15,650 older households were at risk of homelessness in the year to June 2025, a number that has increased by 70% in the last five years. 

“Many do not receive enough Housing Benefit to cover their rent. With over one-third experiencing poverty after housing costs, older renters desperately need the UK Government to commit to uprating Local Housing Allowance (LHA), the mechanism that decides the level of Housing Benefit, in next month’s Budget” explains Joanna Elson, chief executive of the Independent Age charity.

“Currently LHA remains frozen and is falling ever further behind rents. Independent Age’s analysis shows that two-thirds of older renters who receive Housing Benefit experience a shortfall compared to the actual cost of their rent, leaving them filling the gap from their often low incomes. For many this means cutting back to dangerous levels. An adequate level of LHA is crucial to making sure older people in financial hardship have secure and affordable homes. This situation is unsustainable” she adds.

Figures from the Ministry of Housing, Communities and Local Government show that at the end of June this year, there were 132,410 households living in temporary accommodation in England – another record high. Every quarter since March 2023 has been a new record high.

Specifically, 172,420 children were trapped in temporary accommodation at the end of June this year. This is an 8.2% rise on the same period last year (159,310) and also marks the 10th consecutive new record level .

Matt Downie, chief executive of homelessness charity Crisis, comments: “Tragically we have now become totally accustomed to seeing record levels of children growing up in temporary accommodation. We are talking about children with no space to play, no place to do homework, no safe, stable place to call home. So we have to ask, as living costs increase and the supply of social homes recedes, when this will end.

“The truth is that only the Westminster Government can stop this with an ambitious homelessness strategy. It’s essential this helps councils coordinate efforts and plan longer term.

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