Help us shape our response to reform the Economic Crime Levy

Although the Economic Crime Levy makes up a small part of the overall tax system, it continues to have a disproportionate impact on many housing associations, with its cost to the sector projected to rise to £14m per year in 2027.

This rise was driven by last year’s Autumn Budget decision to increase rates. Some of our members anticipate a 14x annual increase from £36k to £500k. Others are now facing bills of £1m per annum.

Why does this matter?

Fundamentally, we do not believe the design of the levy is fair.
Housing associations are being penalised for offering support services, including:

• Providing free debt advisory services to residents in financial hardship.
• Some lending activity such as consumer credit authorisations or deferred payment arrangements to support leaseholders in need.
• Shared ownership advice and resales, for which revenues cover the costs of services provided.

These services help underpin our sector’s social purpose and support the government’s ambitions to address housing need.

The cost of the levy also hinders housing association efforts to increase the supply of social housing. Our analysis finds that the levy’s impact on the sector’s borrowing capacity could be as high as £224m, which means 1,100 fewer social homes will be built as a result.

Furthermore, the calculation of the levy on revenues makes no distinction between commercial businesses, for whom regulated activities are their primary operation, and non-profit housing associations, for whom these services form a small proportion of their work.

What are we calling for?

The fairest outcome would be an exemption to the levy or a special category reflective of housing associations’ social purpose. This is one of the asks of our 2026 Autumn Budget submission.

Additionally, we have continued to discuss this directly with the government, which has confirmed that the levy will be subject to a review in 2027.

How can you help?

Next year’s review will be a pivotal moment to further strengthen our case for reform of the levy. We cannot do that without you.

Any NHF member affected by the levy, either now or in the future, is encouraged to get in touch to share evidence on the impact.

Please email adam.gravely@housing.org.uk to find out more or get involved.