Government must end stealth cuts to Local Housing Allowance in the budget

Over the past few months, I’ve heard from constituents across North East Fife who are struggling to keep up with rising rental costs. Whether it’s families trying to find a home that fits their budget, or individuals facing impossible choices between paying rent and other essentials, one thing is clear: the system designed to support them is no longer fit for purpose.

Local Housing Allowance (LHA) is meant to help households afford rent in the private sector. It’s calculated to cover the lowest third of local rental prices - a sensible idea in principle, ensuring people can access affordable housing in their communities. But in practice, it’s not working.

The Government’s decision to freeze LHA at its 2024 level means that every month, as rents continue to rise, support for renters falls further behind. The most recent data shows rental prices have increased by 5.5% in the past year alone. Yet LHA has remained static. That’s a stealth cut - one that’s quietly forcing people out of their homes and into financial hardship.

In North East Fife alone, over 6,000 households rely on housing support, 4,095 through Universal Credit and another 2,272 through legacy housing benefits. That’s thousands of families, pensioners, and young people who are directly impacted by this freeze.

That’s why I’ve tabled an Early Day Motion in Parliament calling on the Chancellor to urgently unfreeze Local Housing Allowance and commit to a long-term review to ensure it reflects real rental costs. I’ve also called for LHA to be linked to rental market inflation, a simple, fair way to stop people from being priced out of their homes year after year.

We’re a month out from the Budget, and this is a chance for the Government to show compassion and common sense. Unfreezing LHA wouldn’t just be a technical change, it would mean fewer families facing eviction, fewer children growing up in temporary accommodation, and fewer people pushed into homelessness.

As your MP, I’ll continue pressing the Government to fix this broken system. Everyone deserves a safe, secure home, and right now, the Government’s inaction is putting that basic right at risk.

It’s time to end the stealth cuts and make sure housing support truly supports those who need it.