Chancellor Jeremy Hunt has revealed in his Autumn Statement today (Nov 17) that rent for social housing tenants will be going up by as much as seven per cent in 2023-2024. Addressing MPs about the move, which will add up to £340 a year to bills, the Chancellor said: "I want to go further to support people most exposed to high inflation."
He added: “Around four million families live in the social rented sector – almost one-fifth of households in England. Their rents are set at one per cent above the September inflation rate which means that on current plans they are set to see rent hikes next year of up to 11 per cent.
“For many, that would clearly be unaffordable, so today I can announce that this Government will cap the increase in social rents at a maximum of seven per cent in 2023-24. Compared to current plans, that is a saving for the average tenant of £200 next year.”
READ MORE: Energy firms to refund £800,000 after overcharging customers with 'unauthorised administration' fee
More than one million tenants are set to be affected by the seven per cent hike. Around 30 per cent of social housing tenants paying full rents to be directly impacted due to not being eligible for support.
In 2021, rents increased by 1.6 per cent. A lot of social housing tenants are given full housing benefits from the government, meaning the rent increase will be picked up by tax payers.
Mr Hunt also announced that Brits are set to pay more as he revealed a freeze on Income Tax thresholds, which means workers will be facing a stealthy tax rise on their payslips.
Prior to the announcement, the £12,570 threshold for paying 20p Income Tax and 12p National Insurance was to remain in place until April 2026. However, Mr Hunt will now freeze all these thresholds rate for two more years, to April 2028.
READ NEXT:
- How much your Christmas lights cost to run and a trick to cut the bill in half
- Tesco launches new policy for shoppers buying reduced yellow sticker items
- Millions of Brits will feel financial squeeze this Christmas - but won't ask for help
- New campaign as 30,000 people aged 16 – 24 face homelessness this Christmas
- Martin Lewis issues 'wasted' Black Friday sales warning to shoppers
