UK Labour Government Rejects Wales’ Call to Increase Housing Allowance Amid Rising Rents
The UK Labour Government has refused calls to uplift the Local Housing Allowance (LHA) in Wales, according to a recent Freedom of Information (FOI) request. The decision leaves thousands of renting households struggling with rising rents and a widening affordability gap.
In April 2025, the UK Labour Government froze the LHA, creating an average shortfall of over £1,900 per year for households in Wales. Many families are now forced to cut back on essentials, accrue debt, or risk falling behind on rent, increasing the likelihood of eviction.
The FOI, obtained by Plaid Cymru, revealed that both the Labour Welsh Government and the Welsh Local Government Association had formally requested that the LHA be restored to the 50th percentile, a move designed to better reflect local rental costs. The UK Government rejected these calls, prompting criticism from Welsh politicians.
Sian Gwenllian MS, Plaid Cymru’s housing spokesperson, described the decision as further evidence that the so-called ‘partnership in power’ between Labour in Wales and Westminster has failed to improve living standards for Welsh renters.
“The UK Labour Government’s refusal to adjust the LHA has left Welsh renters thousands of pounds worse off,” said Gwenllian. “Rents in Wales are rising faster than anywhere else in the UK, with average increases of nearly 9% in the past year, and some areas seeing rises of more than 20%. This is forcing households into financial hardship and making it harder than ever to afford a safe, stable home.”
The FOI also underscores the limited influence of the Welsh Government in London. Gwenllian added:
“From HS2 to the Crown Estate and now housing, it’s clear that Labour in Wales has little sway with their UK Government counterparts. The UK Government simply ignores their calls, leaving Welsh families to bear the cost.”
Rising rents and frozen housing support are creating a perfect storm for renters across Wales, particularly in high-demand areas where affordability pressures are most acute. Plaid Cymru has consistently highlighted the disproportionate impact on Welsh households and continues to call for urgent reform.
“This government partnership promised support for Wales, but instead it has done nothing but worsen living standards,”Gwenllian concluded. “Restoring the LHA is critical to ensure families can afford their rent and live without constant financial stress.”
The refusal to uplift the LHA comes at a time when housing affordability is a growing crisis in Wales, with calls mounting for immediate action to prevent further hardship for renters across the country.
