Benefits freeze increasing risk of homelessness for low-income tenants

benefits squeeze increasing risk of homelessness
A freeze on LHA rates means that in the majority of cases the allowance is not enough to cover the cheapest rents.

A new report from the Chartered Institute of Housing suggests that the benefits freeze has put private renting out of reach for low-income tenants, and as a consequence, put them at an increasing risk of homelessness.

The report shows that in 90% of cases Local Housing Allowance (LHA) is not enough to cover the cheapest rent it was initially designed to do.

In order to remain in private rented accommodation LHA renters have to make up the shortfall between LHA and their rent, which often leaves them struggling to cover basic living costs.

LHA rates are meant to cover the cheapest 30% of homes in any given area.

The Institute has called on the Government to instigate a review of the policy and to end the freeze immediately.


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