Charity calls for government to reverse freeze on Local Housing Allowance

A charity has urged the government to reverse the freeze on the Local Housing Allowance (LHA) to support low-income renters.

The Salvation Army claimed in a poll of 1,000 adults, nearly half (48%) fear an extra £100 expense would leave them unable to pay their rent or mortgage.

The charity has also called for the government to address the shortage of social homes.

The government must take notice

The Conservative government announced an end to the four-year freeze to LHA rates in 2023; however, the Labour government froze the LHA rates again during the Budget last year.

Previously, Housing Secretary Angela Rayner, rejected calls to unfreeze LHA, emphasising that the solution was to “not give money to private landlords” and focus instead on building more homes.

However, The Salvation Army claimed the freezing of LHA means it “does not reflect the true cost of renting in today’s market”, where they claim rents have soared on average by 7.7% in the UK in the last year.

A poll by the charity 48% of adults fear an extra £100 expense would leave them unable to pay their rent or mortgage.

The Salvation Army’s Captain John Clifton said: “When nearly half of people are so financially fragile that they are living in fear of a £100 bill, something has gone very wrong, and the government must take notice.

“There are already over a hundred thousand people in the UK without a proper home. To protect people who are struggling financially, we urge the government to unfreeze housing benefit or risk pushing thousands more over the cliff edge into homelessness.”

Lift the freeze on LHA rates

The Salvation Army has urged the government to lift the freeze on LHA rates, which they say “would help people claiming Universal Credit or housing benefit afford at least three in every ten of the most affordable properties in their area”.

The Salvation Army has also urged the Department of Work and Pensions to remove the five-week wait for the first Universal Credit payment for new claimants.

The charity has also asked the government to tackle the shortage of affordable housing.

The charity said: “The UK government must address the shortage of affordable housing, especially social housing, so that people on low incomes who are trapped in unsuitable, temporary accommodation can afford a stable home.”