DWP admits 100% of private tenant housing benefit claimants face cuts
23 July 2010
100 per cent of housing benefit claimants in private rented accommodation will lose money due to proposed changes to Local Housing Allowance (LHA), the Department of Work and Pensions has admitted in an impact report released today, leading to fears of an increase in debt and homelessness.
Nationally 936,960 households, termed "losers" by the DWP, will be affected by the changes* to Local Housing Allowance (LHA) proposed by the Coalition Government and due to come in during 2011-12. DWP admits this is "100 per cent" of housing benefit claimants in accommodation in the private rented sector across the country.
Leslie Morphy, Chief Executive of national homelessness charity Crisis, said: "The extent of these cuts to housing benefit is quite staggering. Almost a million households across the country that rely on housing benefit to pay the rent will lose significant amounts of money - an average of over £600 a year from some of the poorest households in the country.
"A million households face an uncertain future. Many will no longer be able to pay the rent. They will be forced into debt, unsuitable accommodation or even end up homeless.
"As Boris Johnson himself has argued the Government must review these cuts immediately. They will be a false economy if they end up causing people to become homeless, leaving local authorities to bear the costs of helping and housing them elsewhere"
For further media information or request an interview with Crisis spokespeople, please contact Garry Lemon at Crisis on 020 7426 3880 or 07973 372 587 or garry.lemon:@crisis.org.uk
Ends
Notes to editors
* Housing benefit in the private rented sector (local housing allowance) is currently calculated at the mid-point of the local market, The Government has propose caps to LHA rates and that it will now be calculated on the bottom 30th percentile of rents in a given area.
The impact assessment regarding these and other changes proposed by the Government can be found here:
http://www.dwp.gov.uk/docs/impacts-of-hb-proposals.pdf
Background on Crisis
Crisis is the national charity for single homeless people. We are dedicated to ending homelessness by delivering life-changing services and campaigning for change. Our innovative education, employment, housing and well-being services address individual needs and help people to transform their lives. We are determined campaigners, working to prevent people from becoming homeless and advocating solutions informed by research and our direct experience. We have ambitious plans for the future and are committed to help more people in more places across the UK. We know we won't end homelessness overnight or on our own. But we take a lead, collaborate with others and, together, make change happen.
