OVER one million private renters on benefits have seen payments frozen this week with some facing a more than £3,000 shortfall.
Local Housing Allowance (LHA) rates are staying at their current level in 2025/26.
LHA sets the maximum amount people renting from a private landlord get in Housing Benefit or the housing element of Universal Credit.
LHA rates vary based on the size of your property, as well as your age, rent levels in your area and who you live with.
See our map above for the maximum amount you can get for a three-bedroom property based on where you live.
Current LHA rates will stay the same until April 2026, after they were hiked in 2024. Before this they had been frozen since 2020.
The freeze means private renters on Universal Credit or Housing Benefit face a shortfall when it comes to paying landlords.
The Resolution Foundation said freezing LHA rates in 2025/26 will leave renters with an average shortfall of £14 per week – £730 a year.
In areas with higher rents, such as inner London, this will be far higher, with shortfalls of up to £60 a week, or £3,129 a year.
Tom Wernham, research economist at the Institute for Fiscal Studies, previously said: “The latest statistics show that private rents have already grown 8.4% since September 2023 [the date when LHA was last set].
“With rents rising fast, the proportion of properties which can be covered by Housing Benefit will shrink rapidly, and pressure will mount on the government to increase the LHA rates, once again.”
You can check your LHA rates on the government website at lha-direct.voa.gov.uk/
What is Local Housing Allowance?
LOCAL Housing Allowance (LHA) sets the maximum amount people renting from a private landlord can claim in Housing Benefit or Universal Credit.
Around 38% of England’s 4.6million renters receive some form of housing benefit.
Around 1.6million have the amount of support available capped at their local LHA rate.
The government planned to introduce LHA to the social housing sector from April 2019, but the proposals were abandoned in 2017.
LHA rates are usually set on April 1 each year for the following 12 months, but the current rate has been frozen since 2024.
And rents have increased significantly since then.
LHA rates are determined based on:
The area in which you live, known as the Broad Rental Market Area (BRMA). The number of bedrooms you are entitled to according to your household size and composition.To qualify for LHA, you must:
Be renting from a private landlord. Have a low income or be claiming other benefits. Meet the residency criteria.LHA rates are reviewed annually, so the amount you receive may change.
If your rent is higher than the LHA rate, you will need to cover the difference yourself.
It is crucial to report any changes in your circumstances to ensure you receive the correct amount.
HELP FOR RENTERS
Rental costs have soared across the UK in recent years – but there is help at hand.
The latest data from the Office for National Statistics (ONS) reveals the average cost of rent in the UK is at £1,326 a month.
In England, they are as high as £1,381, rising 8.3% between February 2024 and February 2025.
If you are struggling with your living costs, there are schemes out there that might be able to help you out.
Discretionary housing payments
Discretionary housing payments (DHP) can help low-income households cover their housing costs.
This can include one-off payments to cover short term rental costs, be put towards a rent deposit on a new property or even rent in advance.
For those with disabilities, it can also be used to cover the costs of adapting your home to meet your health needs.
The payment does not cover things like bills or council tax on the home you live in.
The exact amount you get depends on where you live as each local authority dishes out the cash on a case-by-case basis.
Find out what’s on offer in your area by visiting gov.uk/find-local-council.
Welfare assistance schemes
Many local authorities also have welfare assistance schemes in place.
Help varies from free cash and food vouchers to money towards rent and energy bills.
Some areas offer up to £1,000, whereas some councils do not have any scheme in place at all.
Household Support Fund
The Household Support Fund is a giant fund worth £842million which has been shared between councils in England.
These councils then have to decide how to allocate their share, but usually help is offered to those on benefits or a low income.
The latest round is open between April and March 2026, so it’s worth seeing if you’re eligible for support.
Speak to your local council to see what its eligibility criteria is. You can find what council area you fall under via www.gov.uk/find-local-council.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
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