David Chadwick MP has called on the UK Government to urgently unfreeze the Local Housing Allowance and launch a long-term review, after rental costs in the past year rose by 5.5 per cent.

Local Housing Allowance is designed to help households cover housing costs, reduce pressure on social housing, and prevent homelessness. It is calculated to cover rents for the lowest third of properties in the private rented sector in each area.

There are concerns that the Government’s decision to freeze LHA at its September 2024 value means that it is being cut in real terms month after month, reducing the number of affordable properties for families.

In Brecon, Radnor and Cwm Tawe, 3,976 households currently claim housing entitlement through Universal Credit, and 2,757 households receive support via legacy housing benefits. Mr Chadwick, who is MP for Brecon, Radnor and Cwm Tawe, says this means that thousands of households in the area are impacted by the stealth cut and risk being unable to afford their home.

Liberal Democrat Chief Whip Wendy Chamberlain has tabled an Early Day Motion, supported by Mr Chadwick, which calls on the Government to urgently review Local Housing Allowance and to consider linking the benefit to rental market inflation.

“I’m deeply concerned that thousands of people in Brecon, Radnor and Cwm Tawe are unable to access rental properties because Local Housing Allowance is simply not in line with the reality of the rental market,” said Mr Chadwick.

“We’re a month out from the Budget, and I urge the Government to unfreeze and restore LHA so that it covers at least the bottom 30 per cent of rents in our local area.

“This is a major way in which we can prevent and alleviate homelessness and I hope that the Labour Government have the compassion to do so.”