The amount of housing benefit that private renters can claim will be frozen again next year, meaning payments won't reflect rent increases, leading to potential shortfalls for claimants whose rents rise.
According to the Joseph Rowntree Foundation, the government's freezing of housing benefits further separates the cap from actual rental costs, exacerbating existing financial struggles for low-income families.
Charity Shelter warns that the combination of rising rents and a lack of social housing puts more families at risk of homelessness, making it urgent for the government to reassess housing benefit policies.
The Local Housing Allowance that determines the maximum claimable by private renters has been fixed for four years, resulting in about two-thirds of claimants facing rent shortfalls due to inflated housing costs.
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