Homelessness falls but rent rises put thousands at risk

The Salvation Army has welcomed new Government figures that show a small drop in homelessness in England but warns that unless housing benefit keeps up with rising rents this could be just a temporary dent in numbers.

Official government data reveals that:

• 45,840 households in England became homeless between January and March 2025 – including 11,540 households with children. This is seven per cent fewer than in the same period last year.
• in addition, 37,610 households were deemed at risk of homelessness during this same period, down five per cent.

Director of The Salvation Army’s Homeless Services, Nick Redmore, said: “Any drop in the number of people who are homeless is welcome but a seven per cent decrease is only a small step in the right direction. If the Government wants to put more than a dent in homelessness, it must unfreeze the Local Housing Allowance so that the value of housing benefit keeps up with inflation.

“The latest increase in inflation will hit those on low incomes the hardest as they need to spend a greater portion of their money to pay for essentials like rent, food and bills. Freezing housing benefit at a level where 97 per cent of rents are unaffordable whilst at the same time trying to tackle homelessness makes no sense. It’s like cutting holes in a bucket you are using to carry water.

“Though new plans to increase social housing offer a lifeline for those who can’t afford a roof over their head, this will take years to have any real impact and we need action now. Meanwhile, more and more people will be pushed into homelessness by soaring rents.

“Unless the Government puts an end to contradictory policies, it risks failing the very people its upcoming homelessness strategy is meant to help.”

To support people who are struggling to pay their household bills and other essentials, The Salvation Army is calling on the Government to:

• Reverse the freeze on the value of Local Housing Allowance rates to enable people claiming Universal Credit or housing benefit to afford to rent at least three in every ten of the most affordable properties in any given area.  
• Introduce an Essentials Guarantee within Universal Credit, which means the basic rate of benefits at least covers life’s essentials and that support can never be pulled below that level.
• Remove the five-week wait for the first Universal Credit payment for new claimants.