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| Housing benefit payments to be frozen next year | Housing benefit payments to be frozen next year |
| (4 months later) | |
| The amount of housing benefit that private renters can claim will be frozen again next year, the government has confirmed. | The amount of housing benefit that private renters can claim will be frozen again next year, the government has confirmed. |
| It means payments will not keep track of rent rises, sparking warnings that claimants whose rent goes up would see shortfalls. | It means payments will not keep track of rent rises, sparking warnings that claimants whose rent goes up would see shortfalls. |
| Housing benefit has not automatically reflected rent rises since 2013, with the Conservatives freezing it for seven for the last 12 years. | Housing benefit has not automatically reflected rent rises since 2013, with the Conservatives freezing it for seven for the last 12 years. |
| Charity Shelter said rising rents, combined with a shortage of social housing, was putting families at risk of homelessness. | Charity Shelter said rising rents, combined with a shortage of social housing, was putting families at risk of homelessness. |
| The Joseph Rowntree Foundation (JRF), an anti-poverty charity, said the move meant the cap would drift "further out of step" with the cost of renting. | The Joseph Rowntree Foundation (JRF), an anti-poverty charity, said the move meant the cap would drift "further out of step" with the cost of renting. |
| The government said it was committed to a "fair and sustainable" welfare system, and was committed to the "biggest increase in affordable housing in a generation". | The government said it was committed to a "fair and sustainable" welfare system, and was committed to the "biggest increase in affordable housing in a generation". |
| Housing benefit is paid to low-income households to cover all or part of their rent, either as a standalone payment or as part of Universal Credit. | Housing benefit is paid to low-income households to cover all or part of their rent, either as a standalone payment or as part of Universal Credit. |
| Local Housing Allowance (LHA) determines the maximum amount that can be claimed by people renting from a private landlord, and is set by local rent officers in around 200 areas across the UK. | Local Housing Allowance (LHA) determines the maximum amount that can be claimed by people renting from a private landlord, and is set by local rent officers in around 200 areas across the UK. |
| Payments are calculated by the size of property that a household is entitled to based on the family's size and characteristics, up to a maximum of four bedrooms. | Payments are calculated by the size of property that a household is entitled to based on the family's size and characteristics, up to a maximum of four bedrooms. |
| The payments are also subject to a nationwide cap that limits claims in several parts of London. | The payments are also subject to a nationwide cap that limits claims in several parts of London. |
| They also count towards the overall benefits cap, first introduced in 2013, which is also being frozen next year. | They also count towards the overall benefits cap, first introduced in 2013, which is also being frozen next year. |
| Charities have complained that a four-year freeze to LHA rates between 2020 and 2024 left claimants unable to cover rising rent costs, with Citizens Advice estimating two-thirds experienced a shortfall as a result. | Charities have complained that a four-year freeze to LHA rates between 2020 and 2024 left claimants unable to cover rising rent costs, with Citizens Advice estimating two-thirds experienced a shortfall as a result. |
| Housing benefit rates used to be automatically linked to the cost of rents in different areas, but this ended under the Tory-Lib Dem coalition in 2012. | Housing benefit rates used to be automatically linked to the cost of rents in different areas, but this ended under the Tory-Lib Dem coalition in 2012. |
| Under the Conservatives, rates have been frozen in seven years since then, including the latest freeze period between 2020 and 2024. | Under the Conservatives, rates have been frozen in seven years since then, including the latest freeze period between 2020 and 2024. |
| The Conservatives increased rates for this year, however, by fixing rates so they cover the cheapest 30% of properties in any given area. | The Conservatives increased rates for this year, however, by fixing rates so they cover the cheapest 30% of properties in any given area. |
| 'Let down' | 'Let down' |
| The government has estimated that around 1.6m households will benefit from that uprating this year, to the tune of £785 a year on average. | The government has estimated that around 1.6m households will benefit from that uprating this year, to the tune of £785 a year on average. |
| But campaign groups expressed disappointment that LHA rates will again be frozen next year, after the government confirmed the move alongside the Budget. | But campaign groups expressed disappointment that LHA rates will again be frozen next year, after the government confirmed the move alongside the Budget. |
| The JRF, which has been campaigning for the cap to be permanently relinked to local rents, has estimated that a freeze next year will leave private renters who get housing benefits £243 per year worse off on average. | The JRF, which has been campaigning for the cap to be permanently relinked to local rents, has estimated that a freeze next year will leave private renters who get housing benefits £243 per year worse off on average. |
| Chief Executive Paul Kissack said renters would feel "let down" by the move, adding that rent prices had "soared in recent years". | Chief Executive Paul Kissack said renters would feel "let down" by the move, adding that rent prices had "soared in recent years". |
| The NRLA, a which represents landlords, also complained that next year's freeze would mean support for housing costs would bear "no resemblance to rents". | The NRLA, a which represents landlords, also complained that next year's freeze would mean support for housing costs would bear "no resemblance to rents". |
| A government spokesperson said that this year's uprating meant LHA rates had gone up by 6.7%, and pointed to extra money confirmed at Wednesday's Budget for councils to help low-income households with other costs, such as food and energy. | A government spokesperson said that this year's uprating meant LHA rates had gone up by 6.7%, and pointed to extra money confirmed at Wednesday's Budget for councils to help low-income households with other costs, such as food and energy. |
| They added that councils can make Discretionary Housing Payments to support households struggling with housing costs. | They added that councils can make Discretionary Housing Payments to support households struggling with housing costs. |
| Affordable housing spend | Affordable housing spend |
| The housing benefits bill has ballooned in recent decades and now costs the Treasury over £30bn a year, predicted to rise to £35bn by 2028. | The housing benefits bill has ballooned in recent decades and now costs the Treasury over £30bn a year, predicted to rise to £35bn by 2028. |
| The Chartered Institute for Housing has pointed out the increasing bill means only 12% of government spending on housing in 2022 went towards new buildings, compared to 95% in 1976. | |
| Polly Neate, chief executive of homelessness charity Shelter, said a lack of social housing meant that "as rents continue to skyrocket", the freeze on housing benefits meant low-income families in the private sector were at risk of losing their homes. | Polly Neate, chief executive of homelessness charity Shelter, said a lack of social housing meant that "as rents continue to skyrocket", the freeze on housing benefits meant low-income families in the private sector were at risk of losing their homes. |
| "The government must unfreeze local housing allowance so that families can afford to keep their homes," she added. | "The government must unfreeze local housing allowance so that families can afford to keep their homes," she added. |
| On Wednesday the chancellor confirmed an extra £500m for the current affordable housing budget, which runs until 2026. | On Wednesday the chancellor confirmed an extra £500m for the current affordable housing budget, which runs until 2026. |
| The government is also consulting on a deal that will allow social housing providers to put up rents above inflation for between five and ten years, in a bid to encourage them to invest in new stock. | The government is also consulting on a deal that will allow social housing providers to put up rents above inflation for between five and ten years, in a bid to encourage them to invest in new stock. |