Local housing allowance stays frozen this year. Renters need housing benefit to keep up with rents

Today, a new financial year begins. The tax year starts afresh, and what many of us pay for council tax, water bills and the TV licence increases. On top of this, we’ll likely see continued price rises fuelled by international events.

Although the amount paid in many financial entitlements is due to increase slightly, housing benefit won’t be, despite rents across the UK rising by an average of 10.5% since April 2024. This is because local housing allowance, which determines how much housing benefit is paid depending on where you live in the country, has been frozen by the UK government.

Local housing allowance should cover the cheapest 30% of rented homes in the local area, but it has been stuck at the same level since 2024. In fact, it’s been frozen for eight out of the last 15 years.

The reason that many entitlements, like the state pension, statutory maternity and paternity payments and various out-of-work and caring benefits increase is to try to make sure that the support that many rely on, for various reasons, continues to serve its purpose as costs go up with inflation. So why is housing benefit any different?

As a charity supporting older people in financial hardship, we hear a lot from older private renters. This is a group more likely to be in poverty in later life, with one in three in this situation after housing costs. The older private renters we speak to are sometimes unable to follow the healthy diets their doctor recommends, are forced to wash in cold water, or just heat one room in their home in the depths of winter so they can afford to pay their rent.

At Independent Age, we think this is wrong. local housing allowance was designed to help those who need it meet their housing costs. By freezing it, some of the people on the lowest incomes in our society have to scrimp further to pay their rent, or risk homelessness. One man we provided advice to told us he was living on a “shoestring” and forced to continue working past state pension age in a very physically demanding job. This was despite receiving housing benefit, because it did not adequately cover his rent. That’s why we’re calling on the UK government to commit to uprating local housing allowance every year so it stays in line with at least the cost of renting the cheapest 30% of properties in the local area.

Read more:

• Benefits, water bill hikes and TV licences: All the tax year changes in April 2026 you need to know
• Sky-high rents mean ageing tenants ‘won’t be able to retire’ – adding billions to the benefits bill
• Pensioners are skipping showers and cutting back on food as millions face poverty

This can’t wait. The number of older private renters is set to grow as the current working age population, fewer of whom are able to buy a house, reach state pension age.

Older private renters often face additional restrictions on where they are able to live, for example, some may need a home that has a shower not a bath, or a ground floor flat due to mobility issues. Local housing allowance staying at 2024 rates makes being able to stay in, or find, a suitable home even harder for them. But this isn’t just a problem for older private renters. Renters of all ages are affected by the freezing of local housing allowance. All private renters deserve to have a home that is affordable.

The Renters’ Rights Act, which comes into effect next month, will do a huge amount to increase the levels of security in the private sector. It will protect renters of all ages from unfair evictions and give people more notice if they are asked to leave, as well as limiting the number of times that rent can be increased to once a year. However, despite these welcome steps, the issue of affordability is largely unaddressed by this legislation, leaving a significant amount of uncertainty for renters living on low incomes.

Today, as renters cut back to cope with multiple bill rises, they will feel the impact of what hasn’t increased, their local housing allowance. Without change, renters of all ages will continue to risk homelessness, be forced to make dangerous decisions to save money, or have to move to cheaper properties away from their support systems.

We are calling on the UK government to do the right thing and commit to changing the system, so that private renters on a low income are not left in a precarious position. An affordable and suitable home must be a right, not a privilege, and ensuring people in financial hardship can afford their rent makes this much more likely.

Morgan Vine is director of policy and influencing at Independent Age

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