The local housing allowance, which tenants relying on benefits use to pay their rent, will be frozen in cash terms from next year.

The rate will, essentially, fall below the current level, which covers the lowest 30 per cent of rents in any given area.

The spending review document published by the Office for Budget Responsibility states that, “[The government] has now decided that rates will be frozen in cash terms from 2021 to 2022 onwards.

“This means the £1bn cost of the measure in 2020-21 declines to £0.3bn by 2025 to 2026 (and that LHA rates will fall back below the 30th percentile of local rents over time).”

This, says the National Residential Landlords Association, is a “Kick in the teeth” for renters and landlords.

It points to research by the Joseph Rowntree Foundation which shows five per cent of household in the private rented sector – 200,000 – being in arrears, and 30 per cent worried about paying rent in the next three months.

NRLA chief executive Ben Beadle comments: “Many renters and landlords are struggling with the consequence of rent arrears through no fault of their own yet the government is failing to take the action needed to address this.

“Whilst the chancellor has spoken about the need to support those who find themselves homeless, it would be much better for all concerned to provide the funds needed to sustain tenancies in the first place.”