Ministers have confirmed a fresh Local Housing Allowance freeze for 2026, setting every Broad Rental Market Area across England, Wales and Scotland at the rate determined on 31 January 2024. The Statutory Instrument was signed by Work and Pensions minister Stephen Timms on 6 January, laid before Parliament on 8 January, and takes effect on 30 January. It applies to both Housing Benefit and the Universal Credit housing element. The Government’s note says no significant impact is foreseen.

For households in Greater Manchester, the numbers tell the story. The average two‑bed rent in the city was £1,198 a month in November, while the LHA cap for a two‑bed in the Central Greater Manchester BRMA is £875 a month - leaving a gap of about £320 before any council top‑ups or personal contributions are counted. ([ons.gov.uk](Link

Newcastle’s jump in rents through 2025 makes the maths tougher still. A typical two‑bed there averaged £968 a month in November. The Tyneside LHA for a two‑bed stands at £550.02 a month, meaning a shortfall of roughly £418 for a family relying on Housing Benefit or the UC housing element. ([ons.gov.uk](Link

In Liverpool, the LHA cap for a two‑bed remains £594.99 a month. Average two‑bed rents reached around £806 in November, so tenants face a gap of just over £200 before any Discretionary Housing Payment is considered. ([liverpool.gov.uk](Link

The freeze locks in rates first set in January 2024, when ministers restored LHA to the 30th percentile of local rents for one year. Official tables confirm 2025/26 rates were carried forward unchanged from April 2024. In a May 2025 written answer, Stephen Timms said the April 2024 uplift cost £1.2bn in 2024/25 and around £7bn over five years - figures that shaped the decision to hold rates. ([legislation.gov.uk](Link

Council leaders say a prolonged freeze pushes more families towards temporary accommodation. “The temporary accommodation crisis facing councils is only worsening,” said Cllr Tom Hunt at the LGA, which wants LHA restored to the 30th percentile beyond 2025/26. Scotland’s housing minister Paul McLennan has urged the UK Government to “unfreeze LHA rates”. ([local.gov.uk](Link

Northern councils are already signalling unchanged rates through to March 2026. Manchester lists Central and Southern BRMAs with no change; Bury sets the Bolton and Bury two‑bed at about £575 a month; and Northumberland confirms Tyneside’s 2025/26 figures. Households worried about a shortfall should check their BRMA, confirm the exact LHA, and ask their council about Discretionary Housing Payments. ([manchester.gov.uk](Link

Practically, the Order keeps the five LHA categories - shared room, one‑bed, two‑bed, three‑bed and four‑bed - at their January 2024 valuations again in 2026. That covers every Northern BRMA from Central and Southern Greater Manchester to Leeds, Liverpool, Tyneside, Durham and Teesside. For renters and landlords alike, that means tighter budgeting, more negotiation, and more pressure on local hardship funds if rents continue to edge up. ([gov.uk](Link