A think tank warns that families in private housing may face poverty by 2026 due to rent shortfalls and frozen housing benefits.
Newcastle: A think tank is calling for immediate government action on housing reform. Families in private housing could be pushed into poverty by 2026 due to rising rent costs.
The Institute of Public Policy Research (IPPR) released a report highlighting the issue. It says welfare reforms and a lack of social housing are key factors in increasing child poverty.
The government has frozen the Local Housing Allowance (LHA) again this year. This means housing benefits won’t keep up with rising rents, making it harder for families to afford their homes.
LHA sets the maximum amount families can claim for private rentals. It’s based on property size and local rent levels, but many families are still facing shortfalls.
In Northumberland, 61.5% of families renting privately are struggling. The report warns that without changes, 925,000 children could be affected by 2026.
Over the past 20 years, the number of children in private rentals has increased significantly. The report also points out a “postcode lottery” in LHA rates across different areas.
Waiting lists for social housing are at a 10-year high, with over 75,000 people in the North East needing homes. The lack of social housing since the right-to-buy policy began in 1979 is a major issue.
The state spends £32 billion a year on housing support, much of which goes to private landlords. The IPPR suggests that moving families into social housing could save £3 billion annually.
They recommend raising LHA rates and building 100,000 social homes each year for the next 20 years. This could help reduce poverty and provide stability for families.
Henry Parkes from IPPR emphasizes that affordable housing is crucial for children’s futures. He believes housing reform is essential for both moral and economic reasons.
