No increase in support for private renters in 2025-2026

Alongside childcare, housing costs are often a households largest ongoing expense. However, due to a decision made by the previous UK Government to freeze the Local Housing Allowance, private renters will not see any increase in the amount of support they get towards their rent through Universal Credit or Housing Benefit, even if their landlord increases the cost of their rent.

The Local Housing Allowance is the rate used to determine how much support towards rent that private renters can receive in their local area.

Legislation has now been passed in the NI Assembly which will maintain the Local Housing Allowance Rates for 2025 – 26 at the same amount as they are for this year. While this is Northern Ireland legislation, it is the outworking of the previous UK Government’s decision to increase the LHA in April 2024 but then to have them frozen at that same level from April 2025 onwards.

As rents continue to rise this freeze will put many families under more financial pressure.

Discretionary Housing Payments.

Discretionary Housing Payments can provide additional temporary financial assistance with rent for low-income households in the private rented sector. This is aimed at those who face a shortfall between the rent paid through their benefit and contractual rents due to the amount of Local Housing Allowance paid in their area.

However, as the name suggests this support is discretionary and is only intended to provide temporary assistance to allow tenants some time to find a long-term, affordable solution, which can prove difficult as rents are rising in all areas across Northern Ireland.

For further information regarding benefits and support towards their registered childcare costs, contact the Family Benefits Advice Service on 028 9267 8200 or email hello@employersforchildcare.org.