Charities warn of suffering under housing benefit curbs: Lilley told that planned change to 'reasonable rent' rule will make arrears worse, writes Patricia Wynn Davies
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SOME OF the poorest people in society would be caught in the cross-fire of two conflicting government policies if Peter Lilley, the Secretary of State for Social Security, implements a proposal for regional rent ceilings on housing benefit.
The warning from housing charities and Opposition spokesmen came as the Department of Social Security confirmed that the plan was one of a number of options being studied by ministers as part of the review of the welfare state.
Mr Lilley is concerned that housing benefit is spiralling out of control under current rules obliging local authorities to reimburse 'reasonable rents'. The cost will total pounds 8.8bn this year.
The DSS conceded yesterday that rent increases in a deregulated market were partly to blame, but ministers believe regional maximum rent ceilings could exert a downward pressure on the market.
John Battle, a Labour housing spokesman, said Tory housing policy had shifted the burden of housing provision into the private sector, but it cost an average of pounds 14.24 a week more to place benefit claimants in the private rental sector than in local authority housing.
Shelter, the housing charity, and other groups were quick to point out yesterday that the proposal would quickly exacerbate problems of rent arrears and homelessness caused by the current combinations of policies. Shelter said the plans would 'maximise misery for homeless families'.
While the housing benefit bill has increased more than five-fold, government spending on building social housing has halved in real terms from pounds 13.1bn to pounds 6.2bn.
Donald Dewar, the shadow Secretary of State for Social Security, said vulnerable tenants could be left homeless or stranded on local housing authorities' doorsteps.
Sir George Young, housing minister, was quoted in 1991 as saying Department of the Environment policy was clear: 'Housing benefit must underpin market rent.'
But Richard Lloyd, Shelter's head of policy, said clients were already facing arrears and evictions.
Shelter has calculated that in 30 per cent of all claims, 'reasonable' rents assessed by local rent officers are an average of more than pounds 17 a week lower than the sums actually charged by landlords. But only reasonable rents qualify for the maximum 95 per cent reimbursement from central government.
1992 Rowntree Foundation research found that cash-strapped councils based housing benefit payments on the 'reasonable' rent in 86 per cent of cases, leaving tenants to find the difference from limited incomes or face arrears, eviction and homelessness.
People in 'over-large' accommodation, including the elderly and disabled, are also already penalised.
The Government is now reviewing homelessness legislation and plans further private provision.
(Photograph omitted)
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments