The Bureau also discovered that councils have been encouraging those facing or experiencing homelessness to rent privately or directing them to rental websites.
And campaigners have insisted that means the freeze is no longer viable.
Jon Sparkes, Crisis chief executive, said: “This investigation paints a clear picture that for the overwhelming majority, we’re not meeting this basic human need. This is simply unacceptable – we can and must do better.
Continue reading for free
Registration is free and takes less than 30 seconds.
Our supporters make Big Issue’s work possible. Join us to see the impact we’re having together and discover more ways to help people facing poverty access income, opportunity and support.
“Housing benefit is a tool to prevent people from being forced into homelessness in the first place. But rates are currently failing to cover the cost of even the cheapest private rents in the majority of areas.
“The most immediate and effective way to reduce the pressure is to restore housing benefit rate.”
Advertising helps fund Big Issue’s mission to end poverty
Sparkes’ Shelter counterpart Polly Neate added: “If this government is serious about tackling homelessness, it is not enough to just lift the freeze, as it has said it will. It must also increase housing benefit rates to ensure they cover at least the bottom third of the rental market across the country so people can retain their homes and avoid becoming homeless.”
The impact of LHA is most keenly felt in capital cities with the Bureau finding only two out of 391 properties were affordable in Cardiff, despite 4,000 people asking the council for homeless support last year. In Edinburgh there were just 12 flats out of 662 while in London just seven of 4,400 two-bed homes were affordable in an area where LHA is at one of its highest rates at £320 a week.
The average British council would have to increase LHA by £100 each month to make the cheapest 30 per cent of rental homes affordable, according to The Bureau’s findings, but in London that jumps up to a staggering £1,422 a month.
We’re not meeting this basic human need. This is simply unacceptable – we can and must do better
“The results of this investigation are shocking, but sadly not surprising,” said Labour leader Jeremy Corbyn.
“The homelessness crisis that we see on our streets is a direct result of Tory cuts. The number of people who are living – and even dying – on our streets is truly disgraceful.
“Homelessness is not inevitable, but it becomes inevitable when a government sells off council housing, refuses to build the homes we need and encourages the development of expensive luxury flats which often stand empty and are treated as an investment opportunity.”
Advertising helps fund Big Issue’s mission to end poverty
A government spokesperson said: “Providing quality and fair social housing is an absolute priority. The government increased more than 360 local housing allowance rates this year, by targeting extra funding at low-income households.
“We’re investing over £9 billion in affordable housing and an additional £2 billion after 2022. And we have abolished the Housing Revenue Account borrowing cap – giving councils across the country the tools they need to deliver a new generation of affordable housing.”
