{
  "id": 8418908,
  "title": "‘Cost of housing’ crunch looms for low-income families, warns Resolution Foundation",
  "url": "https://urgent.news/2026/09/19/cost-of-housing-crunch-looms-for-low-income-families-warns-resolution",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-19T05:00:40.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/2026/sep/19/cost-of-housing-crunch-looms-for-low-income-families-warns-resolution-foundation"
  },
  "original_language": "en",
  "account": "A new report from the Resolution Foundation warns that low-income families living in rented homes face a looming crunch due to the housing allowance freeze. The thinktank estimates that over 1.1 million families in this situation will need action from Chancellor John Healey in the upcoming budget. LHA, or local housing allowance, has been frozen in cash terms since autumn 2024. This freeze has resulted in a growing gap between what these families can afford and the actual cost of housing. The report, titled Saving Private Renters, found that a typical two-bedroom household now faces a weekly shortfall of £158. In parts of London, this shortfall rises to more than £300. The thinktank disputes the idea that relinking LHA to local conditions would primarily benefit landlords, noting that 90p out of every £1 saved from this link typically goes to tenants rather than being passed on in higher rents. If the government fails to adjust LHA to actual rents in the next budget, the gap could reach a record high in October, and could increase by 30% by March 2028. The Resolution Foundation economist, Stephen Hunsaker, argues that failing to link LHA to actual rents would leave many tenants struggling to make ends meet. He calls for the government to restore the automatic annual linking of LHA to prevent the freeze from continuing another year and to help alleviate the pressure on low-income families in the private rented sector. This change would cost £2bn annually by 2029-30 and could be funded by increasing the \"taper rate\" at which universal credit is withdrawn for recipients with higher incomes. The report highlights survey evidence showing that one in five working-age adults in housing support families are unable to afford to keep their homes warm and one in eight cannot afford three meals a day. The thinktank points to the widespread calls from charities and campaigners, including Crisis, the Joseph Rowntree Foundation, and Citizens Advice, for the restoration of the link. The budget will be presented by the Chancellor on October 28th, with political pressure mounting to fulfill the Labour promise of providing voters with a \"breathing space\" amid rising costs. However, the government spokesperson suggests that any decisions on LHA rates will be made in the context of the government's welfare priorities and fiscal considerations.",
  "summary": "Thinktank calls on chancellor to end housing allowance freeze with typical two-bedroom household facing £158 week shortfall amid rent rises More than 1.1 million low-income families in rented homes face a “cost of housing” crunch without action from John Healey in next month’s budget, the Resolution Foundation thinktank has warned. Local housing allowance (LHA) has been frozen in cash terms since…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}