What's happened
The UK government's decision to freeze Local Housing Allowance (LHA) rates until 2026 has raised alarms among experts and charities. With rising rental costs, low-income renters are expected to face significant financial shortfalls, potentially leading to increased poverty and homelessness.
Why it matters
What the papers say
According to The Guardian, the freeze on Local Housing Allowance (LHA) rates until 2026 has been met with disappointment from experts like Cara Pacitti of the Resolution Foundation, who noted that renters will face significant gaps between their housing support and rising rents. The BBC highlighted that this freeze has not kept pace with rent increases since 2013, putting families at risk of homelessness. Meanwhile, Business Insider UK reported on the broader trend of rising rents in the US, indicating that similar pressures are felt across the Atlantic, where renters are increasingly moving to more affordable areas due to escalating costs. This suggests a widespread housing affordability crisis that transcends national borders.
How we got here
The freeze on LHA rates follows a decade of inadequate adjustments to keep pace with rising rental costs. Previous freezes have left many claimants unable to cover their rent, exacerbating housing insecurity.
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