Universal Credit recipients are facing immense financial hardship due to the way local housing allowances (LHA) are calculated. The allowances are based on assured short hold rental agreements that include outdated contracts, which do not reflect the current rental market. This practice is leading to underpayments that are making it difficult for many families to make ends meet.

 Countless families depends on some element of universal credit to help with the costs of living. Unfortunately, due to the inclusion of rental agreements that were initiated over five years ago, the averages used to calculate the allowances do not accurately represent the current high rental prices. The consequence? A discrepancy between the local housing allowance and the real cost of renting, which puts families at risk of eviction and homelessness. 

Currently, housing costs are skyrocketing faster than ever, and many families are feeling the effects. According to a recent report by the Office for National Statistics, private rental prices in the UK have increased by an average of 2.4% per year over the past five years. With this kind of inflation, it's crucial that the LHA calculation reflects the current rental climate but it has been frozen from 2020-2024 in many areas and hasn’t increased in many for some years. 

We are calling for an urgent reform of the LHA review process. By ensuring that only rental agreements from the last five years are considered, we can achieve a more accurate reflection of the current rental market. This adjustment will ensure fairer and more sufficient support for families who rely on universal credit to keep a roof over their heads.

Join us in urging the Department for Work and Pensions to update their review process and protect vulnerable families from the brink of financial ruin or homelessness. Your signature can make all the difference. Sign the petition to demand a fair and realistic calculation of local housing allowances now.