‘Older renters can’t wait: local housing allowance must be uprated now’

There is no doubt that this government has presided over major positive changes for renters. 

With one-third of older private renters in poverty after housing costs, as a charity working to end financial hardship in later life, the Renters Rights Act (RRA) has been game-changing for many we support. Recent commitments to increase social housing and end rough sleeping are also welcome. 

However, despite the end to RRA Section 21 ‘no-fault’ evictions, there are still significant barriers to true rental security. Local Housing Allowance (LHA), the mechanism that decides how much Housing Benefit is paid depending on where you live, has been frozen since April 2024. Since the freeze, average rent on a one-bed home has increased by 18 percent. 

LHA is supposed to cover the lowest 30 percent of the market, but an increasing number of renters on a low income are finding there is a widening gap between the support they receive and the rent that is due.  This leaves low-income renters struggling to get by, or at risk of eviction and potential homelessness. 

Our analysis shows that almost 7 in 10 (69 percent) older renters who receive Housing Benefit don’t receive enough to cover their rent, so must make up the shortfall themselves. At Independent Age, we’ve spoken to older private renters in receipt of Housing Benefit about what the freeze means for them, as well as advisers from our Helpline, and the grantee charities we fund.  

These insights are the basis of our new report, The Rent Can’t Wait: The impact of the Local Housing Allowance freeze on older private renters. We want to use this evidence to work with the government, so together we can improve the situation for all renters, including those in later life. Alongside many others in the charity sector, we’re calling for the government to uprate LHA in this month’s Budget and commit to uprating it every year. 

Forced to make cutbacks

With housing benefit frozen and rents rising, older renters are forced to make up growing shortfalls from a low, fixed pension income. Our polling revealed 3 in 5 older private renters in receipt of Housing Benefit are cutting back on essentials to pay their rent, with over a quarter cutting back on heating, which can have dangerous health impacts in later life. 

Others said that they only buy small amounts of basic food to afford their rent. One person told us that, despite helping to avoid the isolation that later life can sometimes bring, they stopped going to a weekly social club because the £7 cost was too much alongside the cost of keeping a roof above their head.

Unsuitable homes

Some older renters told us that the freeze meant they were remaining in homes with conditions that felt unsafe and incompatible with a dignified later life. They could not afford to move, because their Housing Benefit was too low. 

One woman said her flat was in such a poor state that it shocked guests, so she stopped inviting visitors. She also said it was a “fortune to heat” and “draughty” but remained there because it was all she could afford. An older lady we spoke to said that she had already fallen down the steep stairs in her home on multiple occasions and had resorted to crawling down backwards to reduce the risk of another accident. She was keen to move somewhere more suitable but couldn’t find anything within budget.

Become a friend of LabourList and join our community. Our friends support our vital non-factional work and get access to exclusive content and events. 

Facing homelessness

The most recent stats on the number of older households at risk of homelessness make for grim reading: 16,440, the highest on record. The causes of homelessness can be multi-faceted; however, at Independent Age, we believe that this is linked to how unaffordable rented homes are, and therefore to the LHA freeze. 

An older woman that Independent Age supported became homeless after her landlord decided to sell. She needed to remain in the local area to provide support to her daughter and grandson with additional needs but was unable to find anywhere affordable within the LHA rate. As a result of becoming homeless, she spent months in temporary accommodation totally unsuitable for her health and accessibility needs. Another older couple told Independent Age that rises in their rent meant they’re “not that far away from being homeless”. 

In modern Britain, it’s terrifying that this is happening, but it is a reality we must face up to. And it is a problem we must solve. 

What we can do

It’s clear that there is a housing crisis. It’s also clear that the nation’s purse strings are tight. However, the LHA freeze is dangerous and impractical, and it is keeping older renters in poverty, which comes with other associated costs to the Government.

Although in the long term, the government can make a huge difference by increasing the building of social homes, we know that this will take time, which older renters don’t have. And many will not benefit from this initiative. Older renters need to know what support will be available to them now. They, and other renters on a low income, need to see LHA uprated this year, and every year, so they don’t fall further behind. 

Subscribe here to our daily newsletter roundup of Labour news, analysis and comment– and follow us on TikTok, Bluesky, WhatsApp, X and Facebook. You can also write to our editor to share your thoughts on our stories and share your own. The best letters are published every Sunday.

• • SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
  • SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
  • BECOME A FRIEND: If you enjoyed this, why not consider becoming a Friend of LabourList? Help sustain our journalism, and of course Friends do get benefits…
  • PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
  • ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].