ALT quote graphic Hannah Aldridge, Senior Research and Policy Analyst at the Resolution Foundation, said: “The affordability gap between the 30th percentile rent level and Local Housing Allowance has now reached a record high. Without urgent government action this gap will keep growing and pushing down on the living standards of low-income families in the private rented sector. “John Healey’s first Budget next week is an opportunity to fix this once and for all by committing to automatically linking LHA to private rent levels each year. “Previous Resolution Foundation analysis suggests re-linking LHA would primarily benefit tenants, not landlords. And with rising energy bills bringing the cost of living back into focus, now is the right time to give hard-pressed households reassurance on future rent support.

ALT Chart showing proportion of working-age adults in private-renting families on housing support who are materially deprived, and who cannot afford selected essentials: GB, 2024-25

ALT Figure showing the growing number of children living in the private rented sector. While fewer than one-in-ten under-11s lived in the PRS in 2000-01, by 2024-25 it was one-in-four. The number of children living in the private rented sector has tripled – from 1.1. million children in 2000-01 to 3.2 million in 2024-25. As a result, children are now more likely than adults to live in the tenure (23 per cent compared to 22 per cent).