More people will be forced into homelessness unless a three-year freeze on housing rental benefits is ended, the Government has been warned.
Nineteen organisations, including homelessness charities and the Local Government Association, have written to chancellor Jeremy Hunt urging him to increase Local Housing Allowance (LHA) in the Autumn Statement.
LHA is paid to people who qualify for housing benefit but rent in the private sector. Rates vary between areas but have remained frozen since April 2020 despite rising rental prices.
The letter says: ‘At a time of high inflation and rising rents, the LHA freeze is not only resulting in renters of all ages (including thousands in work) losing their homes as their rents rise, it is then leaving them unable to find another, even with the council’s help, because there are no available homes that are genuinely affordable.’
This has resulted in a ‘dramatic increase’ in homelessness, with the highest number of households in temporary accommodation ever recorded and a 26% rise in the number of people sleeping rough, the letter says.
A spokesperson from the Department for Work and Pensions said the Government had invested £30bn in housing support this year and maintained its £1bn boost to LHA.
The spokesperson added: ‘But, the key is preventing homelessness before it occurs which is why we have given £2bn over three years to help local authorities tackle homelessness and rough sleeping.’
