Chancellor John Healey urged to end housing benefit freeze hitting low-income families at Budget

Daily MirrorIndependentCenter9 hr. ago

The Resolution Foundation has warned that over 1.1 million low-income households in the UK are facing a severe housing affordability crisis due to a growing gap between rising local rents and the fixed level of housing benefit support available. This discrepancy is expected to reach a record high this autumn, with the largest shortfalls observed in London, where a two-bedroom rental in inner-east London leaves a monthly shortfall of £324 for low-income families. Across England, more than half of regions experience a monthly shortfall of at least £100. The Local Housing Allowance (LHA), which determines the maximum rental support for those on Universal Credit, has remained frozen for much of the past decade. Unfreezing LHA rates and aligning them with local rents would cost approximately £2 billion by 2029–30. Charities argue that the freeze exacerbates financial strain on families already struggling with energy and food costs, pushing some toward homelessness. New Prime Minister Andy Burnham criticized the freeze, introduced under the previous Conservative government, stating it creates a 'housing trap.' Economists suggest that re-linking LHA to local rents could alleviate pressure

Bias read (Center): The article presents data and expert opinions from multiple sources, including the Resolution Foundation, Shelter, and economist Stephen Hunsaker, highlighting both the problem and potential solutions without overtly favoring any political side. It includes criticism from the current Prime Minister,

The IndependentIndependentProgressive9 hr. ago

The UK government is being urged to allocate £6 billion in the upcoming Budget to address the growing affordability crisis for renters, particularly those on low incomes. A report by the Resolution Foundation highlights that over 1.1 million low-income tenants face a 'cost of housing crunch,' with the gap between rental costs and housing benefits reaching a record high of 23.3% in October. The Local Housing Allowance (LHA), which determines benefit levels, has remained frozen since April 2024, leading to significant shortfalls, around £200 monthly in London and £100 elsewhere. The report warns that if unchanged, the gap could widen to 30% by early 2028. Recent data from Citizens Advice and Crisis reveals that less than 2% of properties are affordable for renters on housing benefits, forcing many to cut back on essential expenses. While critics argue that unfreezing LHA might lead to rent hikes, the Resolution Foundation's analysis suggests that previous adjustments in April 2024 led to reduced rental shortfalls and helped over 150,000 Universal Credit households.

Bias read (Progressive): The article frames the issue as a pressing social concern requiring urgent government intervention, emphasizing the hardship faced by renters and the need for policy change. It highlights the negative impact of freezing housing benefits and supports the call for action, aligning with progressive or左