The Wallich has co-signed an open letter to UK Government ministers ahead of the budget due to be announced on 26 November 2025, joining 40 other organisations across the UK.
Together, we are calling on Prime Minister Keir Starmer and the Chancellor of the Exchequer Rachel Reeves to raise the Local Housing Allowance (LHA) to support people who receive benefits out of of homelessness and into permanent homes.
Co-signers of the joint letter with The Wallich include Chartered Institute of Housing, Crisis, Shelter Cymru, National Registered Landlord Association (NRLA), Bevan Foundation, St Mungo’s and more.
In Jan 2024, the UK Government estimated that 82,500 renters rely on the Local Housing Allowance to cover their rent.
Supporting people in Wales, people supported by The Wallich frequently come through our doors because of the rising costs of rent.
In 2023, the Bevan Foundation reported that only 32 properties advertised across Wales were available at LHA rates, equating to just 1.2% of the market.
16 local authorities did not have a single property available at LHA rates. Since this time, rent levels in Wales have continued to rise.
The LHA is designed to cover the costs of privately renting a home, albeit capped at a level relative to the average rent levels in each local area.
Initially the cap was set at the 50th percentile of the rental market – meaning the cheapest half of all properties would be affordable – but this was lowered to the 30th percentile in April 2012 and has remained largely frozen in real terms since then, with only occasional uplifts.
At the same time, private rents have soared out of reach for most, and vanishingly few properties are affordable at LHA rates. This makes it harder than ever to move people on from temporary accommodation and relieve homelessness.
To alleviate poverty for struggling families, prevent homelessness, and reduce the financial strain on local councils providing crisis homelessness services, LHA rates need to be urgently unfrozen.
That’s why, we are calling on the UK Government to:
With a commitment to maintain this level for the duration of this Parliament and increase the benefit cap accordingly.
It is simply not fair that tenants reliant on the LHA face year-to-year uncertainty about whether they will be able to afford a roof over their heads. This would go a long way to helping to sustain tenancies and prevent homelessness.
Understanding the wider benefits of a more adequate support system is essential to informed policy making.
“The stress of juggling the cost of living is still taking its toll on people we support and that’s part of the reason why people living in temporary accommodation in Wales are stuck right now.
Having a permanent roof over your head should not be a privilege, but a right. Homelessness should be rare, brief and unrepeated and the current freeze on the local housing allowance is making that aim extremely difficult.
The Wallich will continue to campaign on this issue, alongside our colleagues in the sector,until everyone in Wales is able to access a safe and affordable home.”