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.