The government said it was committed to a “fair and sustainable” welfare system, and was committed to the “biggest increase in affordable housing in a generation”.
Housing benefit is paid to low-income households to cover all or part of their rent, either as a standalone payment or as part of Universal Credit.
Local Housing Allowance (LHA) determines the maximum amount that can be claimed by people renting from a private landlord, and is set by local rent officers in around 200 areas across the UK.
Payments are fixed by property size, up to a maximum of four bedrooms, and are subject to a nationwide cap that limits claims in several parts of London.
They also count towards the overall benefits cap, first introduced in 2013, which is also being frozen next year.
Charities have complained that a four-year freeze to LHA rates between 2020 and 2024 left claimants unable to cover rising rent costs, with Citizens Advice estimating two-thirds experienced a shortfall as a result.
Housing benefit rates used to be automatically linked to the cost of rents in different areas, but this ended under the Tory-Lib Dem coalition in 2012.
Under the Conservatives, rates have been frozen in seven years since then, including the latest freeze period between 2020 and 2024.
The Conservatives increased rates for this year, however, by fixing rates so they cover the cheapest 30% of properties in any given area.
