This week, St Mungo’s, along with the wider homelessness sector, is calling on the Chancellor to unfreeze Local Housing Allowance rates at the upcoming Autumn Budget, so more people affected by homelessness can access safe, affordable housing in their local areas.
What are Local Housing Allowance Rates?
Local Housing Allowance (LHA) are the rates used to calculate how much housing benefit people can receive when they’re privately renting. LHA rates are meant to cover the lowest 30% of market rents in each local area.
However, after years of freezes, only 2.7% of homes in Great Britain would be affordable for households receiving housing benefit. This significantly limits the number of affordable accommodation options within the private rented sector for people trying to move away from homelessness support services.
Emma Haddad, Chief Executive of St Mungo’s, said:
“Thousands of people are becoming trapped in a cycle of homelessness because of the lack of affordable housing. At St Mungo’s, we see people becoming homeless because they cannot afford to keep a roof over their head, and then struggling to find a decent home as they try to move away from rough sleeping.
Safe and decent housing should be a right for everyone. People who rely on housing benefit are being priced out of having a home by Local Housing Allowance rates that have not and are not keeping up with soaring rental prices.
By unfreezing Local Housing Allowance rates so they once again cover the lowest 30% of local rents, the Government can ensure people have access to an affordable home.
The upcoming Autumn Budget is a crucial opportunity for the Chancellor to take the necessary action to ease pressure on Councils and the homelessness sector, and to prevent more people being pushed into the trauma of homelessness.”
