Brutal cuts in housing benefit, announced in the Budget, will put more than 200,000 people across Britain at risk of homelessness, and almost 22,000 in the South East alone.
That’s according to the National Housing Federation, which has warned that plans to cut housing benefit by 10% for people claiming jobseeker’s allowance for 12 months or more would lead to real terms cuts of up to 50% in disposable income for a significant proportion of the nation’s 4.7 million housing benefit claimants.
Simon Nunn, head of region for the National Housing Federation said:
‘These cuts to housing benefit could well have a devastating impact on the lives of thousands of people in the South East. Almost 22,000 people in the region could end up homeless here as they see their disposable income slashed.
In essence the proposals mean that those who – despite their best efforts – have failed to find work after 12 months will be pushed out of prosperous areas, ironically taking them even further away from jobs. Not only would this increase unemployment, but it would add to the concentration of social problems in deprived, marginalised areas.’
In the South East, 21,849 people would be put at risk of homelessness, with single, childless claimants hardest hit because they would not be entitled to any other income support from the state – other than their job seeker’s allowance cash. They would be forced to make up the shortfall in their housing benefit with a substantial proportion of their dole money, which is worth just £65.45 a week.
With not enough cash to cover their basic household bills, the Federation warned that thousands of unemployed people on housing benefit in the region will fall into arrears on their rent and be evicted.
Even if tenants do manage to pay their rent, the extra expense could plunge people into poverty and severe debt. The change in rules would also mean that low income groups would effectively be priced out of prosperous areas like London and the South East – and away from jobs – because reduced housing benefit payments would make these areas unaffordable.
The 10% cut in housing benefit was announced last week in the Budget. The reduction in housing benefit would equate to a 53% drop in disposable income for people claiming the maximum £350 a week allowance.
The Federation, which represents England’s housing associations, fears people will struggle to pay their rent and fall into arrears, with most of them being evicted and ending up homeless.
As they would be deemed to be ‘at fault’ for their eviction, they would generally be classed as intentionally homeless and would not be entitled to emergency accommodation from the local authority.
The new rules could also make vulnerable people easy prey for loan sharks as they struggle to make ends meet – further fuelling a cycle of poverty, fear and debt. The benefit cuts would apply to tenants in both the private and social rented sector.
This article has been read 55 times!
