The Resolution Foundation has highlighted a looming crisis for over 1.1 million low-income families in rented homes, warning of a significant shortfall in housing allowances. A typical two-bedroom household is now facing an average deficit of £158 per week due to rising rents and a freeze on the Local Housing Allowance (LHA) since autumn 2024.
The thinktank is urging the chancellor to adjust the LHA to reflect actual rental costs, which could cost £2 billion annually by 2029-30. With many families struggling to afford basic necessities, the upcoming budget on October 28 is seen as a critical moment for addressing these issues.
Watch for the October 28 budget announcement, as it could determine the fate of over 1.1 million families facing severe housing shortfalls. The proposed LHA adjustments may alleviate immediate financial strain, but the long-term implications for housing stability remain critical.