New research from Citizens Advice reveals that almost one million private renting households in Great Britain are facing a shortfall between their housing benefit and monthly rent. The charity found that 58% of private renting households receiving housing support are unable to cover their full rent with the benefit.
This figure represents an increase of almost 300,000 households since May 2024, which was when the government last increased housing support. Citizens Advice is now calling on ministers to unfreeze Local Housing Allowance (LHA) in the upcoming Autumn Budget.
LHA rates, which determine the amount of housing support eligible private renters can receive, were last updated in April 2024 using rental figures from September 2023. Since then, rents have risen by an average of 18% in England and 20% in Wales, according to Citizens Advice, causing housing support to fall further behind actual rental costs.
The charity estimates that approximately 900,000 affected households are in England, with another 50,000 in Wales. Regional differences are significant, with nearly seven in ten private renting households receiving housing benefit in Wales and the North East facing a rent shortfall.