New research from Independent Age, the national charity supporting older people in financial hardship, shows that 37,900 older private renters would be pulled out of poverty if Local Housing Allowance (LHA) matched actual rents. 

LHA determines how much Housing Benefit, which is designed to support people with renting costs, is received and is paid depending on where in the country the person lives.

The financial entitlement, for private renters with the lowest incomes, was due to be uprated this month to cover at least the cheapest 30% of the market, but in last year’s Autumn budget, the UK Government chose to extend the current freeze on LHA. Meanwhile average rents across the UK have risen by 10.5% since April 2024, when it was last uprated.

Independent Age is calling for the UK Government to commit to uprating LHA every year so that it keeps pace with rent and covers at least the lowest 30% of the market. LHA was frozen most recently at 2024 levels, but has actually been frozen for 8 out of the last 15 years. 

Independent Age’s research also shows that 262,047 older private renters currently have a shortfall between their rent and the rate of Local Housing Allowance. The charity highlights that this means that some older private renters receiving Housing Benefit are likely to be cutting dangerously into their budget in order to continue to pay their rent, and going without other essentials such as healthy food and adequate heating.  

Alarmingly, poverty levels among older private renters are increasing. Over one-third (34%) of older private renters receiving Housing Benefit are now in poverty, according to UK Government figures, a rise from 27% the previous year. 

Joanna Elson CBE, Chief Executive at Independent Age said: “The situation for many renters on a low income of all ages is dire. Our research shows that not uprating Local Housing Allowance so that it keeps pace with rising rents has a very direct impact on the lives of older private renters. We know that some are having to choose whether they skip meals, use their lights at night, or keep a roof over their head. 

“The least the UK Government must do is uprate Local Housing Allowance so it covers the cheapest 30% of the market, as it has previously done. Currently, the measure is falling ever further behind rents and we know that, for many, this means cutting back to dangerous levels.

“Many other financial entitlements have been uprated this month, why should Housing Benefit be any different?

“An adequate level of LHA is crucial to making sure older people in financial hardship have a secure and affordable home. This situation is unsustainable and puts older renters at risk of homelessness. It must be remedied.”