According to new research commissioned from London Councils, the government’s freeze on Local Housing Allowance is likely to lead to almost 60,000 Londoners in the private rented sector becoming homeless over the course of the next six years.
The research found that between 16,500 and 22,000 households are to become homeless by 2030, unless the government raises Local Housing Allowance, with this comprising around 58,740 people and 28,000 children. According to the research, the LHA is relied upon by around one in seven private renters in the capital, as they look to meet their housing costs.
Raising #LocalHousingAllowance would:
— London Councils (@londoncouncils) November 9, 2023
✅ Help 60,000 low-income private renters in London avoid homelessness
✅ Ease the massive and unsustainable pressures on London's homelessness services
✅ Save the public finances in the capital more than £100m each year, as well as…
London Councils is calling on the government to end the freeze on the Local Housing Allowance, as the homelessness crisis in the city continues to worsen. This measure has become one of the top priorities for the cross-party group as it submits policy requests for the upcoming Autumn Statement.
London Councils’ Executive Member for Regeneration, Housing and Planning, Cllr Darren Rodwell, said:
“Raising Local Housing Allowance is vital for getting a grip on the homelessness crisis.
“London’s homelessness pressures are already enormous and unsustainable. On current trends, almost 60,000 more London renters are set to become homeless in the coming years.
“London is the epicentre of the national homelessness crisis. The situation is increasingly unmanageable and requires urgent government action. We cannot continue in this disastrous direction.
“Just as the government boosted LHA during the Covid-19 pandemic to prevent a wave of mass homelessness, we need a similar emergency response to the situation today. An increase in LHA will help low-income households pay their rents and avoid homelessness, which can be so devastating to families and bring massive costs to local services.”
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