A new report released today by Independent Age, the national charity for older people in financial hardship, reveals the devastating effect of the over 2-year Housing Benefit freeze on older private renters. The charity’s analysis shows that almost 7 in 10 (69%) older renters who receive Housing Benefit don’t get enough to cover their rent, so must make up the shortfall from their already-low incomes.

Independent Age is calling on the UK Government to unfreeze Local Housing Allowance (LHA) in this month’s Autumn Budget. LHA, the mechanism that decides how much Housing Benefit is paid depending on where you live, is supposed to cover the lowest 30% of the market, but has been frozen since April 2024, and for 8 out of the last 15 years.

Independent Age unveils that, since the most recent freeze, average rents have risen rapidly. Data the charity has analysed shows that, on average, one bed homes have increased in price by over 18% in that time. It also conducted representative polling of older private renters, which showed that two-thirds of those in receipt of Housing Benefit had faced a rent increase in the previous 12 months, with half of them facing an increase of more than £50 a month.

The report, entitled, The Rent Can’t Wait: The impact of the Local Housing Allowance freeze on older private renters, exposes the effects of the freeze on LHA, using interviews with older renters, the charity’s own helpline advisors, and other charities that Independent Age gives grants funding to.

Forced to make cutbacks

The report shows that, with LHA rates frozen, increasing numbers of renters are forced to make up shortfalls from Six in 10 older renters in receipt of Housing Benefit reported cutting back on essentials in order to pay their rent, such as:
fixed, low, pension incomes.
Heating, which 27% cut back on.
Socialising, which 21% cut back.
Food, which 14% cut back on.

Independent Age advisors have spoken to renters who would only buy a small amount of basic food to get by on rather than not meet their rent. Some renters said they wouldn’t use their heating. One renter said that – despite living alone - they had to stop going to a weekly social club because they couldn’t afford the £7 cost alongside their rent. Another said that their rent had increased by £200 since the latest freeze.

Unsuitable homes

Independent Age found that, because of the gap between what is paid in Housing Benefit since the freeze and rising market rents, older renters on low incomes can become trapped living in homes that are unsuitable for their needs. This is because LHA rates mean they are unable to afford to move somewhere that meets their accessibility needs or is not in disrepair.

Over a quarter of older private renters are living in homes that fail to meet the Decent Homes Standard, the highest proportion of any age group. They are also more likely to live in older, colder homes.

One woman spoke about her flat being in such a poor state that it shocked visitors, so she stopped inviting them round. She also said it was a “fortune to heat” and “draughty”. Another renter feared the fact that they were living in a flat which they could afford on Housing Benefit but that it made them feel “stuck… I get quite depressed about it. I have got bad arthritis, and I do worry what will happen if I get to a stage where I'm having trouble getting up the stairs?”

Facing homelessness

The number of older households at risk of homelessness is at its highest rate since records began, with 16,440 affected. One older person Independent Age supported became homeless after her landlord decided to sell. She needed to stay in the local area to provide support to her daughter and grandson who had additional needs but was unable to find anywhere affordable within the LHA rate. As a result of becoming homeless, she spent months in temporary accommodation unsuitable for her health and accessibility needs. Another older couple told Independent Age that rises in their rent meant they’re “not that far away from being homeless”.

Too many older renters are being faced with unimaginable stress and harmful cutbacks as a result of the freeze on Local Housing Allowance. Local Housing Allowance must be uprated so it matches at least the lowest 30% of the market at this year’s Budget, and the UK Government must commit to keeping it in line every year.

Our findings show that older renters are harming their health by not eating properly or using the heating, forced to isolate themselves, or threatened with homelessness. They, and renters of all ages on a low income, deserve certainty and security. The Renters Rights Act was an incredibly welcome start to redressing the balance between renters and landlords, but the work must continue to make renting more secure and affordable. It is clear that the damaging freeze on Local Housing Allowance must end. Renters of all ages will be looking to this month’s Budget for reassurance they will be able to keep a roof over their heads without risking their health.