DWP claimants given massive housing cash boost – but campaigners spot issues

As millions stand to gain a boost in housing support, campaigners warn changes are a “sticking plaster”

Around 1.6 million private renters will receive an uplift to their housing support in April, the government has said. Local Housing Allowance (LHA) rates – used to calculate Housing Benefit for private renters – are set to be uprated in line with the current rental market for the first time in three years.

Frozen since 2020, the rate will now cover the cheapest 30% of rents in an area – meaning families claiming Housing Benefit will be an average of £800 better off a year. The was first announced in Jeremy Hunt's autumn budget in November 2023.

How much you are entitled to will vary depending on where you live, and how many bedrooms your property has. For instance:

• A one-bedroom household in Manchester could get up to £178.36 a week (up £39.56 from £138.08)
• A two-bedroom household in Bristol could get up to £252.00 a week (up £62.14 from £189.86)
• A three-bedroom household in Stoke could get up to £136.93 a week (up £10.35 from £126.58)
• A four-bedroom household in North West London could get up to £483.29 a week (up £57.54 from £425.75)

For a full list of 2024/25 rates, visit the government’s website.

The former rates were frozen in April 2020, but private rental prices have risen at record-pace since. In the year to November 2023, private rents increased 6.2 per cent.

Crisis Chief Executive, Matt Downie said: "In recent years, people receiving housing benefit have found it increasingly difficult to afford the soaring cost of rents. Giving housing benefit this crucial boost will make a real difference to people across Great Britain and will relieve some of the pressure facing people on the lowest incomes."

However, campaigners are warning of limits to the new rates. The Resolution Foundation points out that thousands of households which stand to gain from the uprating will instead find themselves hitting the benefit cap, which is not being uprated in April. This is a limit on the total amount of benefit you can get.

The rates also won't continue to be uprated each year – despite rental price rises showing no signs of slowing. This move marks only the fifth uprating in 12 years.

Tom Darling, Campaign Manager of the Renters’ Reform Coalition, said: “The government’s move to finally uprate Local Housing Allowance (LHA) is long overdue and will make a real difference to hundreds of thousands of renters currently struggling to get by. However, rents continue to rise.”

“By continuing to freeze the level of LHA support, with no commitment to further increases, this decision – welcome as it is – amounts to a temporary sticking plaster. Research by Generation Rent suggests that housing affordability for those on benefits could return to its current unsustainable levels in as little as a year and a half after this increase comes into effect.”