Burnham urged to hike housing benefit bill by ANOTHER £2bn at the October Budget as rent gap hits record high
From the Newshound archive · first published 19 September 2026 · last updated 20 September 2026.

The Resolution Foundation is calling on Prime Minister Andy Burnham to unfreeze Local Housing Allowance rates at the October 28 Budget — at a cost of up to £6bn — and warns that the shortfall between housing benefits and actual rents will hit a record 23.3 per cent next month. Over 1.1 million low-income tenants are facing a "cost of housing crunch", with a two-bedroom flat in east London leaving claimants £324 a month short. The housing benefit bill has already hit a record £39bn this year, with the Renters' Rights Act blamed for pushing rents even higher.
Fewer than 2 per cent of UK properties fall within the means of renters claiming housing benefit, according to Citizens Advice and Crisis.
In 2024-25, more than half of working-age adults in private rented accommodation receiving housing support were in material deprivation — one in eight unable to afford three meals a day.
