Economy

Housing allowance freeze affects low-income families, says Resolution Foundation

The Guardian · September 19, 2026Original source ↗

Housing allowance freeze affects low-income families, says Resolution Foundation

What happened

The Resolution Foundation has reported that over 1.1 million low-income families in rented homes may face financial difficulties if the government does not take action in the upcoming budget. The local housing allowance has been frozen since autumn 2024, resulting in a significant shortfall for typical two-bedroom households amid rising rent costs.

Why it matters

This situation could impact the living conditions of many vulnerable families in the housing market.

How this story affects people

How does this story affect you if you are a low-income family renting a home?

You may struggle to cover your housing costs, as the local housing allowance has not kept pace with rising rents. This could lead to financial strain, making it harder to afford basic necessities and maintain stable living conditions.

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