Resolution Foundation Warns of ‘Cost of Housing’ Crunch for Low-Income Renters
Thinktank urges chancellor to end freeze on housing allowance as more than a million families face rising rent shortfalls
More than 1.1 million low-income families in rented homes face what the Resolution Foundation has described as a “cost of housing” crunch unless the government acts in next month’s budget, the thinktank said.
According to the Resolution Foundation, local housing allowance (LHA) — the benefit that helps low-income tenants cover rent — has been frozen in cash terms since autumn 2024. The thinktank said this freeze, combined with rising rents, is widening the gap between what claimants receive and what they actually owe landlords.
The Resolution Foundation calculated that a typical household renting a two-bedroom property now faces a shortfall of £158 a week between their housing allowance and their actual rent, a gap it attributed to rents rising faster than the frozen benefit rate.
The thinktank called on the chancellor, Rachel Reeves, and the housing secretary, John Healey, to end the freeze on local housing allowance in the upcoming budget, warning that continued inaction risks deepening financial pressure on more than a million low-income renting families across the country.
The warning comes ahead of the government’s budget next month, at which ministers are expected to set out decisions on welfare and housing support policy.
Sources
- ‘Cost of housing’ crunch looms for low-income families, warns Resolution Foundation — The Guardian — World
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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