15,000 families could lose their homes due to benefit cap
Some 14,661 families in the capital could be forced to leave their homes or live in overcrowded conditions unless housing benefit caps imposed by the government are revised, figures compiled by London Council show.
The warning comes after the government has announced that it would be placing national caps on Local Housing Allowance (LHA), a form of housing benefit specifically for tenants living in private accommodation.
London is the only region to be hit by the caps as the shortage of housing in the capital means that cost of renting privately is much greater than anywhere else. Of 650,000 homes being rented through the private sector in London, more than one in three is rented to families in receipt of LHA or Housing Benefit.
Some 18,645 households in the capital stand to be affected by the cap. Of these around 10,500 are from inner London and could be forced to leave their homes and move to outer London boroughs, placing a huge burden not just on housing but on other public services like schools.
Many of the families in receipt of LHA have jobs and play an important part in keeping London's economy and public services going. In at least one borough this figure is as high as 50 per cent.
London Councils is urging the government to allocate a budget to make sure that inner London can cope with the massive shortfalls the caps generate, or revise the caps for the capital so that high house prices are taken into consideration.
London Councils' chair Mayor Jules Pipe said:
"Everybody recognises the need to reform the housing benefit system. But while we understand what the government is trying to achieve, setting an arbitrary cap without any consideration to London's high property values will have several unforeseen consequences.
"Some 10,500 households in inner London could be forced to leave their homes and move to outer London boroughs. This will put huge pressure not only on housing in these outer London boroughs, but also on other public services such as schools with many already struggling to cope with an explosion in demand for places. This migration will have a considerable impact on outer boroughs and will be difficult to cope with.
"Many of the people who will be affected are in work but on low incomes and play an important role in keeping London's economy and public services going. In some inner London boroughs as many as half of the families in receipt of this benefit work for a living, but if they are forced to move away they may have to give up their jobs.
"We want the government to revise the cap for inner London or allocate a budget to make sure that inner London can cope with the massive shortfalls the caps generate."
