Ipswich families caught in nationwide housing benefit crisis

Why it matters: Around 1,220 local households with children cannot cover their private rental costs with current Local Housing Allowance rates, highlighting a growing affordability crisis affecting families across the country.

By the numbers:

• 47% of 2,596 Ipswich households with children receiving housing benefit face rental shortfalls

• 440,000 UK households with children currently affected

• 90,000 more families expected to be impacted by March 2026

• 925,000 children projected to live in households with rent shortfalls by 2026

The big picture: The Institute for Public Policy Research (IPPR) analysis reveals multiple factors driving the crisis:

• Welfare reforms

• Rising numbers of children in private rented housing

• Lack of social housing investment

• Cuts and freezes to Local Housing Allowance rates

What they're saying: "A safe, secure, and affordable home should be the foundation for every child's future," said Henry Parkes, principal economist at the IPPR and author of the report. "Instead, too many families are trapped in a cycle of poverty and instability caused by unaffordable rents and insecure tenancies."

For context: Local Housing Allowance, which is determined by the Department for Work and Pensions, helps private tenants receiving Universal Credit or housing benefit cover rental costs. Rates are based on local market rents.

The other side: A government spokesperson said: "No person should be in poverty – that's why we've extended the Household Support Fund again, are maintaining Discretionary Housing Payments and are giving an extra £233 million to councils directly for homelessness."

The bottom line: With the government not committed to raising Local Housing Allowance rates in April, experts warn the crisis could worsen without significant intervention.