CIH responds to the 2025 Autumn Budget 

The Chancellor of the Exchequer, Rachel Reeves MP, has delivered her Autumn Budget to the House of Commons.

Responding to the announcements Gavin Smart, Chartered Institute of Housing chief executive, said: “Today’s Budget contains welcome steps to tackle the cost-of-living challenge, with the removal of the two-child limit — which CIH has long called for — set to lift thousands of families out of poverty. This is an important milestone and a clear signal of the government’s commitment to supporting those facing the greatest hardship. 

“However, without changes to the benefit cap and local housing allowance (LHA), too many families will still struggle to afford their rent or meet basic living costs. The benefit cap continues to restrict support for households most in need, while frozen LHA rates leave renters facing unmanageable shortfalls. Without action, these pressures risk undermining the positive impact of ending the two-child limit and could leave families facing rising arrears, overcrowding, and homelessness. 

“ With the need to boost supply more urgent than ever, we had hoped the government would confirm how social rent convergence will be reintroduced. We are pleased, however, to see a renewed commitment to this policy, as set out at the Spending Review. Rent convergence is vital to ensuring social landlords have the income required to maintain existing homes and build much-needed new ones. Delaying final confirmation until January creates uncertainty for providers already working to tight statutory rent-setting timelines and risks slowing progress.  

“Clarity early in the new year — with a level set that enables meaningful convergence — will allow providers to plan confidently and bid into the Social and Affordable Homes Programme, supporting the government’s wider housebuilding ambitions. 

“A significant missed opportunity in today’s Budget is the lack of support for critical supported housing schemes, which are becoming increasingly difficult to sustain. These services provide vital support to some of the most vulnerable people and prevent far higher costs falling on health, social care, and the justice system. Targeted investment would protect a sector that is essential to both prevention and long-term public service efficiency. 

“On energy, we welcome the Chancellor’s recognition that direct action was needed to reduce bills after years of persistently high costs that have forced many into impossible choices. However, cutting billions of pounds previously allocated to making homes permanently warmer risks weakening the long-term solution to fuel poverty and putting supply chains and jobs at risk. 

“We now need the government to publish its Warm Homes Plan, setting out how the £14.7 billion in capital funding will be allocated, confirming future energy efficiency standards in both rented sectors, and taking further steps to make clean heating more affordable. 

“ In summary, we welcome the government’s recognition that affordable housing plays a central role in tackling the cost-of-living crisis. But new homes take time to deliver, and action is needed now. Strengthening the social security system, supporting essential supported housing, and providing long-term certainty for social landlords must all be part of a comprehensive approach to reduce poverty, improve affordability, and sustain a resilient housing sector.” 

We’ll be examining the details and producing a member-exclusive 'what you need to know' guide on the Budget shortly. 

Members can also sign up for a special webinar exploring the detail of the budget and what it means for the sector on 4 December.