Caps to housing benefits means that 80% of councils in London have reported an increase in homelessness.
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90% of councils are warning that the freeze on Local Housing Allowance will increase homelessness in their area.
Homeless charities Crisis and the Joseph Rowntree Foundation say those on low incomes are struggling to cover their housing costs.
Their report reveals that 70% of councils reported a rise in the demand for homeless services in the last year. That figure rises to 80% in London, where rents are much higher.
Crisis and JRF are calling for the government to address homelessness by restoring LHA rates in Universal Credit.
Councils reported that there are not enough resources to provide for those in need in their areas. They also said that there needs to be more investment in Social Housing.
Jon Sparkes, Chief Executive of Crisis, said:
“Everybody deserves a safe and stable home to build their lives in, but it’s clear from councils that the growing gap between private rents and local housing allowance is leaving far too many people at risk of becoming homeless, and keeping those already experiencing it trapped in a cycle of destitution.”
What is LHA?
Local Housing Allowance, or LHA, is a housing benefit for private renters. Most recipients are in work but can’t afford their rent.
The LHA given for each area is based on local rents, meaning that the amount people can claim is based on where they live. There are also factors like the number of bedrooms they need and their income.
Housing benefit levels are already set at, or below, the cost of renting a home in the bottom third of the private rental market.
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HeadlineCouncils say housing allowance cap is increasing homelessness
Short HeadlineHousing allowance freezes may increase homelessness in London
Standfirst Seven out of ten councils reported a rise in the demand for homeless services in their area in the last year alone.
90% of councils are warning that the freeze on Local Housing Allowance will increase homelessness in their area.
Homeless charities Crisis and the Joseph Rowntree Foundation say those on low incomes are struggling to cover their housing costs.
Their report reveals that 70% of councils reported a rise in the demand for homeless services in the last year. That figure rises to 80% in London, where rents are much higher.
Crisis and JRF are calling for the government to address homelessness by restoring LHA rates in Universal Credit.
Councils reported that there are not enough resources to provide for those in need in their areas. They also said that there needs to be more investment in Social Housing.
Jon Sparkes, Chief Executive of Crisis, said:
“Everybody deserves a safe and stable home to build their lives in, but it’s clear from councils that the growing gap between private rents and local housing allowance is leaving far too many people at risk of becoming homeless, and keeping those already experiencing it trapped in a cycle of destitution.”
What is LHA?
Local Housing Allowance, or LHA, is a housing benefit for private renters. Most recipients are in work but can’t afford their rent.
The LHA given for each area is based on local rents, meaning that the amount people can claim is based on where they live. There are also factors like the number of bedrooms they need and their income.
Housing benefit levels are already set at, or below, the cost of renting a home in the bottom third of the private rental market.
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