With the 2024 Autumn Statement fast approaching, we wanted to reflect on how the past year has impacted housing and homelessness. We’ll also look at predictions for this year’s statement and the potential ripple effect this might have as we look ahead to 2025.
As a charity that depends on vital donations, how the government handles public money can have a significant impact. If sufficient funding isn’t allocated to issues around housing and homelessness, the likelihood is that higher numbers of people will be relying on services like ours.
What happened in 2023?
This time last year, destitution was at an all-time high in the UK. With sky-high interest rates and prices and a struggling job market, a shocking number of families could not meet at least two of their six basic needs. The lack of progress in stabilising the economy was seriously worrying.
Low-income private renters struggled disproportionately, with 83% going without essentials in October 2023. Many housing associations called for the unfreezing of the Local Housing Allowance in a bid to combat these issues.
Last year, we saw no additional support for first-time buyers or any attempt to address the supply and demand imbalance in the private rental sector.
What are we anticipating in 2024?
An update on local housing allowance
There are murmurs that this year's Autumn Statement might finally resolve any uncertainty or instability around LHA.
Since September last year, rent increases in the private sector have meant the current LHA is not representative of the actual costs of renting privately. It’s, therefore, covering a much smaller percentage of the homes available to low-income families.
Currently, the LHA is fixed until 2025 unless the government actively decides to change this.
Increase in social home rents
In July, the government said this settlement would “give councils and housing associations the rent stability they need to be able to borrow and invest in both new and existing homes”.
It’s hoped that this would give landlords the security and peace of mind to invest in more housing while keeping rents suitably affordable. Time will only tell. One thing is certain: it will be a tricky balance, but we’ll keep a close eye on any developments here.
Our number one priority has always been finding long-term solutions to homelessness in our community, and that will never change. In addition to generous donations from the public, we also need to know that this is a priority for whoever is in power at any given time. We need to see people with power put these issues on their agendas.
Keep an eye on our social media channels for further commentary and our reaction to the upcoming Autumn Statement on 30th October.
If you’re concerned about homelessness or housing stability, please contact us now.