The Chancellor has today (Wednesday 22nd November) announced as
part of the Autumn Statement that Local Housing Allowance rates
will be uprated across Great Britain for the first time in
three years, resetting the rate so that it will cover the
cheapest 30% of properties.
Since the UK Government introduced a freeze on housing benefit in
2020, the affordability of properties has plummeted as rental
costs have hit record levels. Crisis' research with Zoopla
released earlier this year showed that in England just 4% of 1-3 bedroom
properties were affordable on Local Housing Allowance. Across
Great Britain, the figure is just 5%. This has meant tens of
thousands of people have been unable to afford increasing rental
costs, many being forced into homelessness.
Other announcements include:
- Uprating other benefits in line with September’s higher
inflation rate of 6.7% in April 2024.
- Introducing harsher benefit sanctions for people not in work.
Crisis research has showed that sanctions contribute to rising
homelessness.
- £120 million has also been announced to help prevent
homelessness.
Responding to the Autumn Statement, Matt Downie, Crisis
Chief Executive, said: “Today’s announcement to increase
housing benefit is, in the short-term, the single biggest step
the Chancellor could take to prevent and end homelessness for
tens of thousands of households. 1.8 million private renters
currently receive housing benefit in England alone, yet our
research with Zoopla shows that just 5% of properties in Great
Britain are affordable to them. We’re pleased the Chancellor has
finally listened to calls from the homelessness sector and
councils and taken action to prevent more hardship.
“The three-year freeze on housing benefit has had devastating and
far-reaching consequences, with people on the lowest incomes
being completely priced out of renting. At the same time, we now
have over 100,000 households in England alone trapped in
temporary accommodation, while the number of people sleeping
rough is climbing fast. Many councils are on the verge of
financial collapse trying to cope with the demand.
“While the Chancellor’s decision to tackle homelessness in the
short-term is a positive step, there is no room for complacency.
The next UK Government must sustain this investment, otherwise we
will see homelessness rise again.”
