Response: Work and Pensions Committee inquiry into benefit levels in the UK

Shelter responds to the Work and Pensions Committee inquiry into benefit levels

Working-age benefits should be adequate to allow low-income households to sustainably rent a suitable home. They should also meet the essential needs of their household, including food, utilities, communications, travel, clothing (including school uniforms) and toiletries. These needs will vary depending on household size, the presence of children and the specific needs of people within the household, including people with disabilities or ill health.

1.8 million private renters in England are in receipt of the universal credit housing element or legacy housing benefit. This is equivalent to one in three private renters.

The three-year freeze to the local housing allowance (LHA), which determines the amount of housing benefit private renters can receive, has come at a time of record increases in private rents. Breaking the link between rents and LHA completely undermines the adequacy of other benefits. People have no choice but to dip into other benefits to pay the rent – they must prioritise rent over food and other bills if they are to avoid homelessness.

If we’re to prevent homelessness growing still further in 2023/24, local housing allowance must be made fit for purpose. At the very least, local housing allowance should be restored to the level it has been intended to cover since the austerity reforms of 2011: covering the cheapest 30% of local homes.

In the long term, the government should reduce the reliance of low-income households on housing benefit and the private rental sector by investing in a new generation of truly affordable social homes.