Call to unfreeze LHA immediately to reduce homelessness in London

A homeless charity is urging the Government to unfreeze the Local Housing Allowance (LHA) rates immediately in a bid to reduce the rising number of homeless people on London’s streets.

The Single Homeless Project, the largest charity dedicated to helping Londoners in crisis, wants action to prevent homelessness for up to 17,500 Londoners it says will be forced to live in temporary accommodation by April 2024.

According to a new analysis by the charity, 17,500 people could be forced into homelessness before April, which translates to one person every eight minutes and 30 seconds.

‘Homelessness is at a record high in our city’

The charity’s chief executive, Liz Rutherfoord, said: “Homelessness is at a record high in our city with one person pushed into this devasting situation every eight and a half minutes.

“The Government has already shown they recognise that the current Local Housing Allowance isn’t fit for purpose.

“The situation is urgent now, so why must thousands of Londoners face a truly miserable winter, when action could be taken immediately?”

She added: “As a charity, we prevent homelessness for thousands of Londoners every year and we help people move from temporary accommodation into a private rented property.

“In both cases, the Government’s low Local Housing Allowance is hindering our efforts and not giving Londoners a fair chance.”

The amount someone can receive in housing benefit

The LHA determines the amount someone can receive in housing benefit, set at the cheapest 30% of privately rented properties in the local area.

However, in the 2023 Autumn Statement, the Government declared that the four-year cash freeze in LHA rates would come to an end.

Starting from April 2024, LHA rates will be determined by two factors: the size of the property a household is entitled to, with bedroom entitlement based on family size and characteristics, and the 30th percentile rent for properties of different sizes within each local ‘Broad Rental Market Area’ (BRMA), based on rents surveyed in the year to September 2023, up to national maximum amounts.

This prolonged LHA freeze is now a leading cause of homelessness in London, the charity says, forcing many people into rent arrears and homelessness.

It also means that Londoners living in homeless hostels and temporary accommodation are often stuck there for months, unable to afford the rent in a private rented property and blocking the bed space needed to help someone else off the streets.

Share This Article