In response to the Government’s Autumn budget, campaign group Generation Rent has welcomed more universal support for energy bills but is hugely disappointed that Local Housing Allowance remains frozen.
In Parliament today, Chancellor John Healey announced a number of measures to give people breathing space during the current cost of living crisis. This included a number of measures to support people with rising energy bills, including a £2.6 billion scheme where people living in Council Tax bands A-D will receive a £100 energy payment this winter.
Holly Williamson, Chief Executive of Generation Rent, said:
“We’re happy the Chancellor has listened to our concerns of the disproportionate impact of rising energy bills on private renters, announcing a more universal support package to help people make ends meet. This £100 payment will be a lifeline for millions of renters during what promises to be a very difficult winter.”
However, while the Chancellor spoke about the government’s ‘moral mission’ to end rough sleeping and young people spending too much of their income on rent, there was no mention of Local Housing Allowance (LHA) being unfrozen, as Generation Rent and many other organisations have called for.
LHA has been frozen since April 2024 since then, private rents have risen by over 23%, according to the Resolution Foundation. This means just 2.7% of advertised lets in Britain are affordable for people claiming housing benefit.
On LHA, Holly Williamson said:
“Homes are the foundations of our lives, so it is hugely disappointing the government has maintained the freeze of Local Housing Allowance. When housing benefit doesn’t cover the rent it forces families into impossible decisions, traps them in poverty and leaves them vulnerable to homelessness, with councils picking up the pieces. This decision also brings into question the government’s goal of ending rough sleeping, as it will mean there are very few affordable long-term homes for people currently sleeping rough.
“The Government must tackle the root cause of the rental affordability crisis in our country by limiting annual rent increases, ensuring rents cannot continue to rise faster than wages and helping reduce the long-term cost to the taxpayer.”
