The 2026 report on poverty, by the Joseph Rowntree Foundation highlights the relationship between rent and poverty. It estimates that 40% of social renters and 37% of private renters are “in poverty after housing costs”.
Within this group around a quarter of social renters and 4 in 10 private renters were only in poverty after their housing costs were factored in “and so appear to have been pushed into poverty by the amount of money they have to spend on housing”.
As the annual data sent into the Ministry of Housing by councils shows, rent arrears of council tenants in England have risen sharply from £203 million in 2015/16 to £393 million in 2024/25.
Arrears for housing association tenants have risen to £798 million.
The decision of the government to give councils and housing associations the power to increase rent by CPI+1% for 10 years can only serve to push more people into poverty. In addition, the government is reintroducing ‘rent convergence’, which could mean an extra £2 a week until rent reaches the ‘target rent’ (see Why we oppose ‘rent convergence’).
The Rowntree report underlines the importance of our campaign around the Statement calling on the government to abandon the policies of CPI+1% and ‘rent convergence’. The government cannot ‘tackle the cost of living crisis’ by further impoverishing already poor tenants.
As we have explained eslewhere above inflation rent increases cannot compensate for under-funding of council housing.
If you or your organisation haven’t signed the Statement email us at labourcouncilhousingcampaign@gmail.com
Labour Campaign for Council Housing 