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United Kingdom·Trade & Economy

Over a million low-income UK renters face widening housing benefit shortfall, think tank warns

Saturday, 19 September 2026, 06:34 · 1 min read

The Resolution Foundation (a UK-based economic think tank focused on living standards) has warned that more than 1.1 million low-income families in rented homes face a deepening affordability crisis, as Local Housing Allowance (LHA) — the benefit that helps cover private rental costs — has been frozen since autumn 2024 while rents continue to rise. The average low-income family renting a two-bedroom flat now faces a weekly shortfall of £158 between their benefit entitlement and actual rent, a gap that exceeds £300 per week in parts of London and is projected to reach 30% by March 2028 if no action is taken. Ahead of the UK budget on 28 October, the foundation is urging Housing Secretary John Healey to relink LHA to local rent levels — a move costing around £2 billion annually — arguing that 90 pence of every additional pound in allowance flows to tenants rather than landlords, and that without reform, many low-income families will continue going without food and heating to meet their rent obligations.

Sources
The Guardian — ‘Cost of housing’ crunch looms for low-income families, warns Resolution Foundation ↗︎
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