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Increase in LHA could lift tens of thousands of older renters out of poverty
Research commissioned by the charity Independent Age suggests that almost 38,000 older renters would be lifted out of poverty if the government increased Local Housing Allowance (LHA) to match rents.
Increase in LHA could lift tens of thousands of older renters out of poverty #UKhousingThis is the latest call from the sector after LHA was last uprated in April 2024. LHA has been frozen for eight out of the last 15 years, including in last year’s Autumn Budget.
At the same time, average rents have increased by 10.5% since April 2024.
“Independent Age is calling for the UK government to commit to uprating LHA every year so that it keeps pace with rent and covers at least the lowest 30% of the market,” the charity said.
This request has been echoed by other charities that have submitted evidence to the Education and Work and Pensions Committees’ joint inquiry examining the government’s new Child Poverty Strategy.
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In their submission, housing charity Shelter said: “Shelter questions how councils can prevent homelessness while LHA remains frozen and the household benefit cap remains in place.”
Independent Age said that 270,422 older private renters currently face a shortfall between their rent and their LHA entitlement, and that 37,900 would be lifted out of poverty if the LHA were uprated to match rents.
A total of 34% of older private renters receiving housing benefit are now in poverty, up from 27% the previous year, the charity added.
One anonymous older renter who had been helped by Independent Age said that “housing benefit pays just over half of our rent but our landlord raise[s] the rent too much each year”.
Another anonymous renter said: “The increases in rent over the past year or two have far outstripped the increases in pension... and because the housing benefit is based upon an unrealistic rent, I now pay 60% to 70% of my monthly income in rent alone... add to that council tax and energy costs, it leaves very little to live on.”
Joanna Elson, chief executive at Independent Age, said: “The situation for many renters on a low income of all ages is dire.
“Our research shows that not uprating LHA so that it keeps pace with rising rents has a very direct impact on the lives of older private renters.
“We know that some are having to choose whether they skip meals, use their lights at night, or keep a roof over their head.
“The least the UK government must do is uprate LHA so it covers the cheapest 30% of the market, as it has previously done. Currently, the measure is falling ever further behind rents and we know that, for many, this means cutting back to dangerous levels.
“Many other financial entitlements have been uprated this month, why should housing benefit be any different? An adequate level of LHA is crucial to making sure older people in financial hardship have a secure and affordable home.
“This situation is unsustainable and puts older renters at risk of homelessness. It must be remedied.”
Towards the end of last year, a cross-party group of MPs also asked the government to focus on preventative homelessness measures, such as unfreezing LHA rates and increasing the temporary accommodation subsidy.
This report was followed by the leaders of 40 groups across the housing sector calling on the government to introduce these measures.
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