Housing Benefit Freeze Until 2026 Risks Homelessness Surge Amid Rising Rents

April 1, 2025
Housing Benefit Freeze Until 2026 Risks Homelessness Surge Amid Rising Rents
  • A government spokesperson acknowledged the housing crisis and pointed to efforts to build 1.5 million homes and invest £2 billion in new social and affordable housing to enhance rental affordability.

  • As of February 2025, the average rent in England reached £1,381, coinciding with record levels of 126,040 households, including over 164,000 children, living in temporary accommodation.

  • Starting today, housing benefit rates will be frozen until 2026, impacting approximately 5.7 million low-income households that depend on this support for their rent.

  • Over the past decade, rents in England's private sector have surged by 45%, worsening the affordability crisis for low-income renters.

  • Research from Crisis and Health Equals found that fewer than three in every 100 private rental properties were affordable for housing benefit claimants between April and October 2024.

  • Crisis's chief executive, Matt Downie, described the situation as 'impossible,' stressing that the benefits freeze effectively acts as a real-terms cut to essential support.

  • Households relying on housing benefit now face an average shortfall of £337 per month for a one-bedroom home, with similar gaps for larger properties.

  • The autumn budget, announced by Chancellor Rachel Reeves, confirmed the ongoing freeze on local housing allowance (LHA) rates, which have been periodically frozen since 2016.

  • In 2024, only 2.5% of private rented homes in England were deemed affordable for those on housing benefit, a stark decline from 12% in 2021-22.

  • Crisis warns that the widening gap between housing benefit and rent costs could lead to increased homelessness and a greater reliance on temporary accommodation.

  • Health Equals's Paul McDonald highlighted the severe health impacts of poor housing, noting that some individuals may experience life expectancy reductions of up to 16 years due to inadequate living conditions.

  • Crisis and Health Equals reported that the rising rents are pushing families into poor-quality housing, costing the NHS an estimated £1.4 billion annually due to health impacts from these inadequate living conditions.

Summary based on 1 source


Get a daily email with more UK News stories

More Stories