“Freezing local housing allowance at current levels is pushing many families to breaking point,” said Gavin Smart, chief executive of the Chartered Institute of Housing. Ministers have now confirmed the freeze will carry into 2026 via a statutory order signed on 6 January and due to take effect on 30 January, covering all broad rental market areas across England, Wales and Scotland. The move repeats last year’s approach and was authorised by DWP minister Stephen Timms. ([cih.org](Link

In plain terms, Local Housing Allowance (LHA) is the cap on the housing support private renters can receive through Housing Benefit or the Universal Credit housing element, set for each Broad Rental Market Area and bedroom size. After a one-off uprating to the 30th percentile of local rents from April 2024, rates were held at those levels for 2025-and are now being held again for 2026. ([gov.uk](Link

On the ground in Greater Manchester, the council’s published caps remain unchanged: in Central Greater Manchester the monthly maxima are £775 for a one‑bed, £875 for two‑bed, £950 for three‑bed and £1,350 for four‑bed, with the shared accommodation rate at £411.58. Those are the figures caseworkers will still be working with this year. ([manchester.gov.uk](Link

Across the North East, the picture is similar. Northumberland’s guidance still lists the Tyneside two‑bed cap at £550.02 a month, £650 for three‑bed and £925.01 for four‑bed. These are the same rates claimants have seen since last spring. ([northumberland.gov.uk](Link

Further south in South Yorkshire, the government’s own indicative tables for 2024/25-carried forward in 2025/26-show Sheffield’s monthly caps around £575 for a one‑bed, £620 for two‑bed, £680 for three‑bed and £950 for four‑bed. Those levels now roll on again under the new freeze. ([gov.uk](Link

Rents, however, have not stood still. Official ONS estimates show private rents rose 4.4% across the UK in the 12 months to November 2025, with the North East running hotter at 8.4%. That widens the gap between real rents and frozen support, especially for families trying to secure two‑ and three‑bed homes. ([ons.gov.uk](Link

Independent analysis backs that up. The Institute for Fiscal Studies calculates that holding LHA at older levels leaves affected households, on average, nearly £1,500 worse off since the rates were set-cutting disposable income by around 6% and shrinking the share of homes that LHA fully covers to roughly one in ten. The Resolution Foundation warns the shortfall versus the 30th percentile is on track to hit record levels next year, equivalent to about £120 a month for a typical two‑bed renter. ([ifs.org.uk](Link

Frontline services in the North East say they are seeing the strain. “The gap between local housing allowance and private sector rents is the highest in Newcastle than any of our nine locations,” said Crisis Newcastle’s director Crystal Hicks, describing queues outside the city centre hub and longer waits for housing. ([theguardian.com](Link

Northern sector bodies have been urging ministers to rethink. The Northern Housing Consortium has called for LHA to be restored to at least the 30th percentile from 2026/27, while a coalition led by CIH and joined by the NRLA pressed government to unfreeze rates to help curb rising homelessness and council costs. ([northern-consortium.org.uk](Link

For tenants weighing options now, Shelter advises checking your LHA rate and, if a shortfall persists, applying for a Discretionary Housing Payment from your council. The Valuation Office Agency publishes the official LHA tables and postcode look‑ups; last year’s were released on 31 January and set out the caps councils continue to use. Local Citizens Advice teams across Greater Manchester can also help with budgeting and appeals. ([england.shelter.org.uk](Link

As with the 2025 order, officials have proceeded without a full impact assessment, arguing no significant sector‑wide impact is foreseen. For renters and caseworkers from Manchester to Tyneside, the practical effect is clear enough: budgets pinned to January 2024 rents must stretch through another year of higher prices. ([legislation.gov.uk](Link