Crisis, the homelessness charity, is calling for the government to restore its previous levels of the LHA (Local Housing Allowance) housing benefit, or thousands of tenants could face 'living on the streets'.

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The charity states the present levels do not match the current market's rents and says that this would prevent more than 6,000 households in danger of being made homeless. This will also pull over 35,000 children out of the poverty level across the UK in the next three years.

The Crisis' campaign 'Cover the Cost' is backed by Alma Econics' latest research which explains the positive outcome if the government invests a further £3.3bn in LHA over the next three years, with a net benefit of £2.1bn.

The charity is recommending that the government should immediately commit to £820 million in next year's forthcoming spends.

It is estimated that if the LHA levels were unfrozen, then it will cover the cost of the lower end 30% of market rents.

The research also says that besides the estimated three years' net benefits of £2.1bn; it will also help the government to build a good quota of affordable housing for the future, so as not to further exacerbate the housing crisis in spite of a rising population.

Chief executive of Crisis, Jon Sparkes, said: “Everyone in our society should have the means to rent a safe, stable home where they can build their lives. But every day at Crisis, we hear of the agonising stress and anxiety people face, unable to afford their rent and keep the roof over their head. Right now people are losing their homes and being left trapped in homelessness, unable to get back into adequate housing. We have to stop this happening.

“The UK government has made commitments to end rough sleeping and reduce homelessness, but without addressing the root causes behind homelessness, it will sadly continue to rise. Long-term solutions like building more affordable social homes will take time so in the meantime, investing in LHA, so it covers the true cost of rents, provides the quickest and most effective opportunity to help those already homeless back into housing and for thousands more, prevent it from happening in the first place.

“Over the coming weeks, we urge the government to prioritise investment in Local Housing Allowance as part of its upcoming spending decisions – this research makes a clear-cut case that doing so will have an immediate financial and human impact. Ending homelessness for good is truly within our capabilities but will only be made possible by taking steps like this.”

The Local Housing Allowance benefit was set up for people who could not afford to rent a 'home' would be able to do so in the cheapest third of rental properties where they lived.

However since a four year freeze on LHA rates came into force in 2016, the housing benefits are not keeping in line rental increases, causing many families and households to fall into considerable debt and the ever present danger of not keeping up with their rental payments.

Crisis is now urging the government to restore the previous levels of LHA to ensure that tenants can feel safe and secure in their 'homes'.

Terrie Alafat CBE, chief executive of the Chartered Institute of Housing, said: “The Chartered Institute of Housing is pleased to join Crisis and so many other organisations in calling on the government to restore local housing allowance to cover the most affordable 30% of rents.

"It is a national shame that thousands of families face being made homeless and councils are spending £1bn a year on temporary accommodation because LHA is failing to do its job. Addressing this issue will bring the government significant savings in the benefit bill, as well as giving some of our most vulnerable fellow-citizens a more secure environment in which to live.