Housing benefit to be uprated for first time in three years - Crisis responds

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.”