Nearly half of UK adults fear risk of housing arrears

Nearly half of UK adults (48%) fear an extra £100 expense would leave them unable to pay their rent or mortgage, according to a new poll* commissioned by The Salvation Army. The new finding comes as the freeze on the value of housing benefit comes into effect while household costs remain high.

To protect people on low incomes from losing their homes, The Salvation Army is calling on the Government to reverse last month’s decision to freeze the value of housing benefit so it reflects the true cost of renting in today’s market. Rents have soared on average by 7.7 per cent in the UK in the last year, and as high as 9.4 per cent in the North East followed by London at 9.1 per cent-**.

The Salvation Army’s Captain John Clifton said: “When nearly half of people are so financially fragile that they are living in fear of a £100 bill, something has gone very wrong — and the Government must take notice. 

“There are already over a hundred thousand people in the UK*** without a proper home. To protect people who are struggling financially we urge the Government to unfreeze housing benefit or risk pushing thousands more over the cliff edge into homelessness.

“Rent and bills have gone up and welfare support has gone down. Every day at our food banks, debt and employment advice services, churches and community centres we see the reality of what it’s like for people who can’t afford to feed, clothe and house themselves and their families.

“With so many living on a knife-edge, the risk of homelessness is no longer something that happens to ‘other people’ — it’s becoming a real concern for ordinary households across the country.”

Michelle Lemos, aged 46, is a mum of two and rents a two-bedroom flat in London where she lives with her seven-year-old son, who is autistic and 18-year-old daughter who is a student. Michelle has gained an Ofsted licence and was in the process of starting her own child-minding business but has had to put her plans on hold while she receives treatment for a painful medical condition that affects her ability to walk. Unable to currently work, Michelle relies on Universal Credit including housing benefit to help with the cost of rent and bills. She also uses The Salvation Army’s Community Pantry in Welling, London, to buy donated food and other essentials for a fraction of their normal cost.

Michelle said: “My rent has increased from this month and I really don’t know how I will afford it. I’m worried about losing my home. My bills have gone up and I’m already in debt on my electricity. I’ve also had a very hard time trying to feed my family.

“I feel frustrated as I wanted to start working for myself, but I can’t do anything at the moment because of my medical problem. Though I get Universal Credit it’s not enough to cover rent and all my bills. Life is just so expensive at the moment and I’m worried about getting into more debt. Coming to The Salvation Army’s community pantry for food, and to sometimes get clothes has been a massive help. I don’t know what I’d do without this support.”

The Salvation Army is calling for the UK 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.

Address the shortage of affordable housing, especially social housing so that people on low incomes who are trapped in unsuitable, temporary accommodation can afford a stable home.

• * The poll of a nationally representative sample of 1,000 UK adults was carried out in March 2025 by nfpResearch on behalf of The Salvation Army. It found that 48% of respondents were extremely or very concerned that an unexpected bill or cost of around £100 would cause them to struggle to pay their rent or mortgage.  
• ** Figures on private rent inflation for the year to March 2025
• *** The accumulative number of households in temporary accommodation in each UK country comes to more than a hundred thousand:
• England
• Scotland
• Wales
• Northern Ireland