Housing benefit tenants to lose £50 month with changes to Local housing allowance

Around 60% of housing benefit claimants outside of London will have households facing losses of around £50 per month when the delayed cuts to housing benefit come into effect in 2011.

Analysis performed by Shelter, suggest that this reduction in housing benefit with affect nearly 780,000 people who currently receive local housing allowance to live in the private rental sector.

There is concern that these cuts will strongly affect those on low incomes such as pensioners, those with disabilities, carers and people in low paid jobs many of whom are already struggling will find the extra money needed to find to keep a roof over their head difficult.

Shelter chief executive Campbell Robb said “We’re really concerned that many people will become trapped in a spiral of debt, arrears and eviction which, for some, may end in homelessness. We could see children pulled out of schools and families forced to move away from their homes, which will have a big impact on local communities and services. Not only are these charges a huge threat to England’s mixed and diverse communities, but they may ultimately act as a disincentive to work if the minority of unemployed claimants are unable to live in areas with job opportunities, while the 300,000 claimants who are in work have to move away from their jobs”.

Changes in local housing allowance will take effect from April 2011 and October 2011.

Comments

Housing cap

louise Pepperall

Wednesday 26 January 2011 3:35:08 pm

I (an epileptic, scoliosis sufferer) am struggling to find alternative accommodation as private landlords in london dont want dss partly due to the housing cap and also the problems of receiving there rent as some spend it on other things. Charging high rents is one thing, but doing it for dilapidated accommodation is another and that is whats happening. Alot of people will be homeless and/or have to move back to there home town ( place of birthI but that will give others like my self who belong in england, more opportunities of work and decent accommodation. So perhaps it is not a bad thing in the long run. However it is rather stressful period, which agregates my epilepsy. I had no heating over christams as my boiler needs replacing but my agents has told he 'I could not care less, all I m interested in is the money and you pay your rent'. Its alright having rent assessment officers, assessing the rent, but that wont stop eviction which could be done straight after the rent is reduced.

Lord frued is prepared to make rents paid direct from the state to the landlord, only if rents are lowered and only 10% of landlords will reduce there rent. I know the tax payers begrudge anyone getting benefits but some of us are genuine and have no choice.

SE London

It is also difficult to get unfurnished accommodation at an affordable rate. My rent is over the Local housing allowance rate now and could be increased in June. which is worrying me as I cant afford it.