Housing Secretary Angela Rayner has dismissed renewed calls to unfreeze the Local Housing Allowance (LHA), arguing that raising rates would simply direct more public money to private landlords rather than addressing the root of the housing crisis.

Speaking before the Housing, Communities and Local Government (HCLG) Committee during a session on the Spending Review, Rayner instead pledged to prioritise a major expansion in social housing. “The only way we are going to fix this crisis is not by giving more money to private landlords,” she said, “but by delivering a social housing revolution.”

Under Pressure on LHA Impact

Committee chair Florence Eshalomi MP challenged Rayner on the LHA freeze’s impact on poverty and homelessness, noting that the Labour government had reinstated the freeze in the 2024 Budget despite widespread concern. The National Residential Landlords Association (NRLA) has also called for the allowance to be restored to the 30th percentile of local rents to prevent hardship among tenants.

Rayner sidestepped questions on whether the freeze was a political choice, instead citing the government’s £34 billion annual housing support spend and pointing to “egregious” practices in the private rented sector. She accused some landlords of evicting families “with no excuse” and hiking rents—a claim at odds with English Housing Survey data showing that most tenancies end at the tenant’s request.

Focus on Social Housing Over PRS Support

Rayner argued the government’s focus should remain on building 1.5 million new homes and expanding the Affordable Homes Programme. While she acknowledged the private rented sector’s role in housing low-income tenants, she maintained that the long-term solution lies in reducing reliance on private landlords.

Sector Response

Critics warn that the freeze on LHA risks pushing families into homelessness in the short term, especially given current rental inflation and limited local authority housing stock. Even Labour MPs have raised concerns that building alone will not meet immediate demand.