Response to the 2025 Budget
26 November 2025
As organisations rooted in our communities, we know that building homes is only part of the solution; investing in the people who live in them is just as important.
The Chancellor Rachel Reeves announced her 2025 on Wednesday 26 November.
Responding to it, Catherine Ryder, Chief Executive of PlaceShapers, said: “Measures to ease the cost-of-living crisis, removing the two child benefit cap and initiatives aimed at strengthening employment prospects are all welcome steps that will help reduce the pressures that many households are facing. However, we remain concerned that the freeze to the Local Housing Allowance is pushing people in private rent into unnecessary hardship.
“The broader emphasis on driving economic growth is vital. The sector stands ready to make the most of the new Social and Affordable Homes Programme to build new homes that will support this ambition and work with government to drive forward regeneration where it’s needed most. The reintroduction of rent convergence will further help housing associations to shore-up their plans to build new homes and invest in their existing homes and we look forward to seeing further detail on this soon.
“As organisations rooted in our communities, we know that building homes is only part of the solution; investing in the people who live in them is just as important. The announcements are a welcome acknowledgement that some people are struggling and need more support from the government to live well.
“PlaceShapers was proud to stand alongside 40 organisations in pressing the government to increase the Local Housing Allowance, and we remain a committed partner in the Joseph Rowntree Foundation and Trussell Trust Guarantee Our Essentials campaign.
“Both the budget and the earlier Spending Review show the government sees housing associations as key partners in building new homes and delivering economic renewal. We look forward to building on this relationship to address challenges in meeting new requirements on existing homes and regenerating our homes and communities so they are fit for the future and deliver the quality of homes that every resident has the right to expect.