Freeze on housing benefit rates will hit vulnerable tenants

31 Oct 2024 12:24 PM

The NRLA has raised concerns over the Government’s decision to freeze housing benefit rates from next year, warning that the move will make it increasingly difficult for people in receipt of benefits to secure tenancies in the private rented sector.

The NRLA argues that frozen housing support rates, which fail to keep pace with actual rent levels, will only worsen the financial strain on renters who are already struggling.

Responding to confirmation by the Work and Pensions Secretary that housing benefit rates will be frozen from next year, Chris Norris, Policy Director for the National Residential Landlords Association, yesterday said:

“Whilst the Budget spoke about protecting vulnerable people, it failed to confirm what we now know – that housing benefit rates will be frozen as of next year. 

“It makes no sense whatsoever to provide support for housing costs that bear no resemblance to rents as they actually are. 

“Coupled with tax hikes on the supply of homes to rent, announcements today will make it hardest of all for those claiming benefits to access and sustain tenancies in the rented sector.” 

Notes

• In a written statement to Parliament, the Work and Pensions Secretary, Liz Kendall MP, has noted: “I can also inform the House that local housing allowance rates for 2025/26 will be maintained at the 2024/25 levels, following their increase in April 2024.”  See here.
• The Joseph Rowntree Foundation has calculated that if LHA rates remain frozen over this parliament, on average, private tenants on housing benefits will be around £700 worse off per year.  See here.
• Further information about the NRLA can be found at www.nrla.org.uk.  It posts on X @NRLAssociation.
• The NRLA’s press office can be contacted by emailing press@nrla.org.uk or by calling 0300 131 6363.