Housing benefits (for private tennants/lha) confirmed as frozen for 2025/26

apple85
apple85 Online Community Member Posts: 888 Championing

https://www.bigissue.com/news/housing/local-housing-allowance-benefits-autumn-budget/

https://www.landlordzone.co.uk/news/new-local-housing-allowance-freeze-is-nonsensical-say-landlords


so Labour snuck in a housing benefit freeze (wasn’t in the budget doc)

We know that labour want to make the same £3.9billion savings between now and 2029/30 that the tories proposed with their wca reform.

My question is is this latest housing benefit freeze make up part of the £3.9billion savings that I mentioned above…………or in addition to? (I guess the disability white paper will contain the financial breakdown to that)


out of interest how much would the gov save from a years private house/lha rent freeze?

Comments

  • whistles
    whistles Online Community Member Posts: 2,043 Championing

    You see this is where the system is so complex that the freeze is going to effect some and not others.

    Based my own circumstances, I won't notice the freeze. That's because despite renting privately I am stuck on the old system. I don't even get the LHA rate! I have been topping up the difference for years.

    I don't like the idea of UC having a housing element. But it would mean getting the LHA rate even if it freezes it would benefit me.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    I don't know the answer to your question but there's many people that wouldn't benefit from an increase anyway. Those that are affected by the benefit cap, as well as those that migrated to UC, which includes Transitional Protection.

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,125 Championing

    I'm not surprised about the freeze at all. LHA hadn't increased for about 5 years until this year (2024). I didn't expect it to be increased again next year.

    In my case, I wouldn't see the increase anyway, as it would just erode my transitional protection on UC, as Poppy says above.

  • whistles
    whistles Online Community Member Posts: 2,043 Championing

    Our so called you won't be worse off lie. We won't for a year, but we will thereafter until older claimants catch up as UC was always less money.

  • whistles
    whistles Online Community Member Posts: 2,043 Championing
  • whistles
    whistles Online Community Member Posts: 2,043 Championing

    If the above is true the HB hasn't kept up with the rises in rent for the past ten years!! It got frozen for seven years.

    So each government comes along and freezes and cuts everyone at some stage and we are still in a mess.

    ESA got frozen for four years I seem to recall.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    UC is less money for everyone. Some people are better off by claiming UC. For example, those that are in the Support Group for ESA that doesn't include the SDP, if they are 25 and over then LCWRA for UC pays about £120/month more.

    Yes, those that claim SDP with their ESA will eventually be receiving the same as those that didn't originally receive it.