“More than 8,000 children are among the families living in temporary accommodation in Greater Manchester and that is simply unacceptable,” said Mayor Andy Burnham late last year. Those pressures won’t ease soon: ministers have confirmed a fresh freeze to Local Housing Allowance (LHA) for 2026. ([greatermanchester-ca.gov.uk](Link

The new statutory instrument (SI 2026/5) was made on 6 January, laid on 8 January and comes into force on 30 January. It mirrors last year’s approach by basing 2026 LHA calculations on the rates set on 31 January 2024, rather than current market rents. ([statutoryinstruments.parliament.uk](Link

What does that mean on the ground? In Central Greater Manchester the LHA for a two‑bed remains £875 a month; in Southern Greater Manchester it’s £750. Sheffield’s two‑bed rate stays around £620, Wigan’s £500, and on Tyneside £550-figures that will now carry through another year. ([manchester.gov.uk](Link

Rents, meanwhile, keep edging up across much of the North. ONS reports annual private rent inflation running as high as 8.4% in the North East into late 2025, while Zoopla puts yearly growth around 3.2% in the North West and 1.8% in Yorkshire and the Humber. Freezing support against that backdrop widens the gap facing low‑income renters. ([ons.gov.uk](Link

Crisis’s analysis shows how tight the market has become: just 2.5% of private rentals in England were affordable on housing benefit between April and October 2024, with typical shortfalls of more than £300 a month for a one‑bed. That is the market LHA is expected to cover. ([crisis.org.uk](Link

Councils are picking up the tab. The Local Government Association says the temporary accommodation ‘subsidy gap’ has grown sharply-reaching £260m in 2025-while national net spending on temporary accommodation has surged. Town halls warn that frozen LHA leaves prevention budgets squeezed just as caseloads rise. ([local.gov.uk](Link

Greater Manchester’s own figures show temporary accommodation use has nearly doubled since 2019, with 5,915 households-including 8,600 children-in TA by March 2025 and unrecoverable costs close to £49m because welfare rules don’t reflect real rents. Local leaders say the LHA decision entrenches those pressures. ([greatermanchester-ca.gov.uk](Link

In Sheffield, councillors are reshaping their temporary accommodation approach to stem spiralling costs. “We are dedicated to ensuring every resident in need is met with efficient, compassionate support while we work towards long‑term housing stability,” said Cllr Douglas Johnson as the city signed off a new strategy. ([sheffield.gov.uk](Link

Manchester City Council has already published unchanged 2025/26 LHA tables across the city’s two Broad Rental Market Areas-confirmation that last year’s rates rolled forward. With the 2026 order now made, those figures will underpin awards again from April. ([manchester.gov.uk](Link

The Department for Work and Pensions has handed responsibility for LHA policy to Minister of State Sir Stephen Timms, who also signed last year’s order. As with 2025’s instrument, no standalone impact assessment has been published alongside the freeze. ([gov.uk](Link

For northern renters and landlords, the upshot is simple: support will be set to older rent data for another year while local markets move on. That may temper demand at the very cheapest end of the market, but for thousands of households already carrying a monthly shortfall it means more tough choices, and more calls on already‑stretched council budgets. Campaigners from Crisis and others are urging ministers to revisit the decision before the new financial year. ([crisis.org.uk](Link