NHC supports sector calls to unfreeze local housing allowance

The NHC has signed a joint sector letter from the Chartered Institute of Housing (CIH) calling on the Government to unfreeze Local Housing Allowance (LHA).

Last year our Northern Housing Monitor research found 3.6 million people in the North – 22% of the Northern population, and 33% of children – are pushed into poverty after paying their housing costs.

The LHA freeze is particularly problematic in the North with a higher-than-average number of people in the lowest income bracket living in the private rented sector (PRS). In the North, 28% of people in the lowest income bracket live in the PRS, compared to 22% on average in England.
Keeping LHA at the same level while rents rise means more people living in the PRS will be pushed into poverty and potentially face arrears and eviction.

We are backing the CIH’s asks of the government to:

• Restore LHA rates to at least the 30th percentile from 2026/27, with a commitment to maintain this level for the duration of this Parliament and increase the benefit cap accordingly. It is simply not fair that tenants reliant on the LHA face year-to-year uncertainty about whether they will be able to afford a roof over their heads. This would go a long way to helping to sustain tenancies and prevent homelessness.
• Undertake a full assessment of the likely social and economic impact of restoring LHA rates to the median rent. Understanding the wider benefits of a more adequate support system is essential to informed policymaking

You can read the full CIH letter here.