The Resolution Foundation thinktank has warned that more than 1.1 million low-income families in rented homes face a 'cost of housing' crunch unless the government ends a freeze on local housing allowance in next month's budget.
Key facts
- More than 1.1 million low-income families in rented homes face a housing cost crunch, according to the Resolution Foundation.
- A typical two-bedroom household faces a £158-a-week shortfall amid rising rents.
- Local housing allowance (LHA) has been frozen in cash terms since autumn 2024.
- The thinktank is calling for action from John Healey in next month's budget to end the housing allowance freeze.
More than 1.1 million low-income families living in rented homes face a “cost of housing” crunch without action from John Healey in next month’s budget, the Resolution Foundation thinktank has warned.
According to the Guardian, the thinktank is calling for an end to a freeze on local housing allowance (LHA), which has been held in cash terms since autumn 2024.
The foundation said a typical two-bedroom household now faces a shortfall of £158 a week amid rising rents, highlighting the gap between the support available and the cost of renting.
With the allowance frozen while rents have continued to climb, the thinktank argues that affected households are being squeezed.
The warning is directed ahead of the budget expected next month, with the Resolution Foundation urging action to address the growing shortfall faced by renting families.
The thinktank says more than 1.1 million households could be affected if the freeze on the allowance remains in place.
Why it matters
Housing costs are among the biggest pressures on low-income households, and a frozen allowance combined with rising rents can leave families unable to cover the gap. The thinktank's warning puts renewed focus on decisions to be made in the upcoming budget.
Frequently asked questions
How many families are affected?
The Resolution Foundation says more than 1.1 million low-income families in rented homes face a cost of housing crunch without government action.
How big is the shortfall for renters?
According to the thinktank, a typical two-bedroom household faces a shortfall of £158 a week amid rent rises.
What is the Resolution Foundation calling for?
The thinktank is calling on the chancellor to end the freeze on local housing allowance, which has been frozen in cash terms since autumn 2024, in next month's budget.