WIDER POLICIES
Wales-Specific Housing Benefit Policy

Key concerns: 

Housing Benefit policy is the responsibility of the UK Government (the Department of Work and Pensions).  Welsh Assembly policy is restricted to potentially lobbying the UK Government about issues of concern.

The Welsh Assembly's main concerns relate to:

• The Single Room Rent restriction
• The Local Housing Allowance

Homeless Link Cymru has raised similar concerns (see section 3 of Homeless Link Cymru's response to the national homelessness strategy).

The Single Room Rent restriction

The Welsh Assembly's main concern is the Single Room Rent restriction, a UK-wide policy which limits the amount of Housing Benefit that a single person under the age of 25 can claim (see UK Housing Benefit Policy section).

The Homelessness Commission investigated the impact of Housing Benefit on homelessness in Wales and recommended that the Welsh Assembly put pressure on the DWP to abolish the Single Room Rent restriction.  The National Homelessness Strategy accepted the recommendation and sets out the Welsh Assembly's commitment to pushing for an abolition of the Single Room Rent restriction.

The Local Housing Allowance

The second area of concern for the Welsh Assembly is the Local Housing Allowance, a UK-wide policy which will give low income private sector tenants a flat rate of benefit whatever their actual rent, and where the benefit will be paid to the claimant rather than directly to the landlord (see UK Housing Benefit Policy section).

The Welsh Assembly is concerned with the impact on access to the private rented sector - that landlords may become more reluctant to rent to those on Housing Benefit because of the risk of non-payment.   One pilot of the Local Housing Allowance is already underway in Conwy, where there have already been some reports of a reduction in the number of landlords renting to Housing Benefit tenants.   The Welsh Assembly is also concerned about the possible future introduction of the Local Housing Allowance in the social sector, where a higher proportion of tenants receive Housing Benefit, and there are higher levels of arrears.  Research by the Audit Commission in Wales has shown that rent arrears are a major reason for eviction, which therefore increases homelessness levels.

Finally, concerns have been raised over the removal of the choice to have Housing Benefit paid direct to landlords, for people in Wales without bank accounts.  These people will haveto receive their benefit as cheques, which are both liable to delay and involve charges for the claimants when they cash the cheques.  Shelter Cymru has asserted that the option for direct payment needs to be retained, regardless of whether the person is vulnerable or not, and has predicted an increase in rent arrears and homelessness as a result of the Local Housing Allowance. 

Alleviating some of the problems of Housing Benefit

The Welsh Assembly promotes a number of initiatives that might help alleviate the problems associated with Housing Benefit.  These include commitments (as outlined in the National Homelessness Strategy) to monitor reasons for social evictions, and to reduce evictions in both the private and social rented sectors by working with agencies and local authorities on alternative solutions.

Lack of access to suitable accommodation for young people is a particular problem because of the Single Room Rent restriction.  The Welsh Assembly requires all local authority Young People's Partnerships to address housing needs of young people in the area.  It is also funding some bond schemes, which guarantee to pay landlords any outstanding costs at the end of the tenancy.

Page last modified on 30/06/2006 at 10:50