From The Independent · · 2m
190,000 families face poverty as Labour freezes housing benefit
Charities warn that maintaining the housing benefit freeze will push nearly 200,000 into poverty and undermine efforts to end rough sleeping.
In brief
Charities warn that maintaining the housing benefit freeze will push nearly 200,000 into poverty and undermine efforts to end rough sleeping. Nearly 200,000 families will be pushed into poverty by Labour's decision to maintain the freeze on housing benefits, charities warn, threatening the government's rough sleeping…
Nearly 200,000 families face poverty
Leading charities warn that Labour's decision to maintain the freeze on housing benefits will push nearly 200,000 families into poverty or deeper poverty.
The freeze contradicts rough sleeping pledge
In an open letter to Prime Minister Andy Burnham, charities including the Trussell Trust, Generation Rent and the Joseph Rowntree Foundation say the freeze will critically undermine his commitment to end rough sleeping.
Housing benefit frozen since April 2024
The Local Housing Allowance, which calculates housing benefit levels, has been frozen since April 2024. It is designed to match at least the lowest 30 per cent of rents in any local area.
Rent gap hits record 23.3 per cent
As market rents have surged, the shortfall between Local Housing Allowance rates and affordable rent hit a record 23.3 per cent in October.
Joanne's impossible choice in Bury
Joanne, 59, from Bury, faces a monthly housing benefit shortfall of around £125 on her £700 rental. She says moving to somewhere cheaper is impossible and that all her money goes to rent.
“Basically, you don't have a life, you're just existing because all your money is just going to live.”
Poverty projections by 2029
Private renters will be around £700 worse off per year by 2029 without action, figures from the Joseph Rowntree Foundation show.
Charities call for £1.7bn investment
The 19 signatories, including Shelter and The Salvation Army, have urged Prime Minister Burnham to spend the £1.7bn needed to end the freeze and introduce an inflation-linked rent cap to limit rising costs.
“You have been clear that tackling homelessness is a top priority. These two steps would bring your vision within reach.”
Record temporary accommodation crisis
There were a record 135,580 families living in temporary accommodation as of March 2026, housing 177,530 children.Councils in England spent a record £2.
Government defends housing investment
A government spokesperson said it increased Local Housing Allowance rates in 2024 at a cost of around £7 billion over five years and is investing over £40 billion in affordable and social housing.
What it means
Nearly 200,000 families will be pushed into poverty by Labour's decision to maintain the freeze on housing benefits, charities warn, threatening the government's rough sleeping targets.
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