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Opinion

Labour must increase housing benefit in autumn budget or risk making pensioners homeless

Local housing allowance rates are set to be refrozen in April, leaving a larger gap between housing benefit and rising rents. Labour must take action at the budget to prevent older people becoming homeless, says Independent Age’s Joanna Elson

There is a very misleading stereotype that all older people own the homes they live in. But the truth is, there is a rising number of older private renters, and the proportion of people aged over 65 living in privately rented homes is expected to increase significantly in the next few years. By 2040, if current trends continue, more than one in every four older people will be privately renting.   

Many older renters are living in significant financial hardship, and a significant proportion of them rely on housing benefit to pay their rent. But, despite national average rents increasing every year, local housing allowance rates are not automatically uprated annually in line with local rents. This means it has become increasingly difficult for older renters in financial hardship to make ends meet. Recent polling we carried out at Independent Age highlighted that almost half of older renters (48%) who received housing benefit are worried about not being able to pay their rent. These people are at severe risk of being made homeless. 

As an older people’s charity focused on improving the lives of those in financial hardship, at Independent Age we have long been calling for action from the UK government to protect these older renters. The autumn budget offers a crucial opportunity to do so. It is vital that the UK government uprates local housing allowance rates at least annually to keep pace with the actual cost of renting. We believe it needs to cover the rent of at least the cheapest 30% of the local private rental market.  

Failure to act during the upcoming autumn budget will leave thousands of financially insecure older people fearful that their housing benefit won’t cover their rising rent.  

Without this change, more older people will be at risk of homelessness. Our data shows that at least 61% of older housing benefit recipients saw their rent rise in the past year. These significant rent rises – 12% of older renters on housing benefit faced increases between £200 and £299 – will severely impact the many older private renters already living in poverty, and continued increases of this kind will push many over the edge.   

With the proportion of people who rent after retirement increasing every year, wider reforms are needed to protect and improve the lives of older renters. The UK government’s Renters’ Rights Bill is a step in the right direction and must be progressed as soon as possible. Measures to outlaw section 21 ‘no fault’ evictions are vital to ensure that tenants have more security and freedom from the fear of being evicted without a fair reason, as well as enforcing a decent homes standard in the private rented sector. 

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Joanna Elson CBE is chief executive of Independent Age.

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