Ahead of the Government’s upcoming Autumn budget (26 November 2025), Homeless Link has joined dozens of other charities and support groups in calling for Local Housing Allowance (LHA) rates to be urgently unfrozen.
LHA sets the limit on how much financial support people who receive benefits can get for their housing costs. The Government’s freeze on LHA rates while rent levels continue to increase every year makes it harder for people to access and retain a secure home, and puts many at risk of homelessness.
In a joint letter to the relevant Government ministers, the organisations signing the letter have called for LHA rates to be set to cover at least the bottom 30th percentile of rents from 2026/27, with a commitment to maintain this level for the duration of this Parliament. The letter calls on the Government to increase the benefit cap accordingly, to ensure that people receive the extra financial support from higher LHA rates.
The letter also recommends a full assessment of the likely social and economic impact of restoring LHA rates to the median rent, as understanding the wider benefits of a more adequate support system is essential to informed policymaking.
The letter, coordinated by Crisis, Chartered Institute of Housing, and NRLA, has been signed by more than 30 charities and campaign groups.
Rick Henderson, Homeless Link CEO, explained why we support this reform:
“We hear frequently from our members that insufficient Local Housing Allowance rates are hindering their ability to support people to move in to secure, long-term homes. The current unrealistically low LHA rates are contributing to the record levels of homelessness the country is currently facing.”
“The government has pledged to create a truly cross-government strategy to get back on track to ending homelessness. That must include the Treasury doing its bit to ensure a sufficient supply of secure homes. A permanent uplift to LHA rates would be a really significant first step towards building a real all-of-government effort to end homelessness.”