Benefit changes are forcing people onto the streets – how to get help
CHANGES to the benefits system are driving up homelessness amongst private renters, a new report claims today.
Housing benefit payments have not risen in line with soaring rents which have left families in arrears, according to a shock new survey.
A quarter of landlords said their tenants had a shortfall of more than £100 between their housing benefit payment and their rent, according to a new report commissioned by the Residential Landlords Association.
They say this shortfall is to blame for a rise in homelessness in the private rented sector.
The number of private renters made homeless has risen from 6,630 in 2010/2011 to 15,490 in 2017/2018 - an increase of 134 per cent, according to latest figures from the Ministry of Housing, Communities and Local Government.
Landlords blamed the rise in homelessness on the introduction of Local Housing Allowance (LHA) rates in 2008, which is the way housing benefit is currently calculated - and a four-year freeze on payments.
What to do if you are falling behind with your rent
HERE'S how you can get help:
- Alternative Payment Arrangement - If you’re behind on your rent, you could have your housing payment sent directly to your landlord. This is called an alternative payment arrangement (APA). You can apply for an APA through your work coach. Your landlord can also make the application.
- Advance Payments - You could also apply for from your main Universal Credit payment.
- Council Help - You can apply for extra help from your local council - called a "discretionary housing payment". to apply.
- Budgeting Advance - You may be able to get help from the government to help with emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
- Cut your Council Tax - You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren't enough to cover your rent.
- Food banks - If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the website
- Citizen's Advice- Citizen's Advice has lots of that can help you if you've fallen into rent arrears. Contact them or by phoning 03444 111 444.
They said this "double whammy" leaves some tenants with housing benefit payments that don't cover their rents.
LHA rates are based on private market rents being paid by tenants in the surrounding area but critics say that the rates haven't risen in line with soaring private rents.
You can find out what is on the Government website.
The Government said it raised 213 LHA rates by 3 per cent in April this year and that is is carrying out a review of how the allowance affects rent affordability.
There are fears homelessness could continue to rise as Universal Credit is slowly rolled out across the country - after landlords revealed two in three tenants who are on Universal Credit can't always pay their rent on time.
Renters on benefits are the most likely to see their tenancies end, the study of 1,850 landlords by the Policy Evaluation and Research Unit at Manchester Metropolitan University for the Residential Landlords Association found.
It also claimed that more than half of renters were evicted because they fell into arrears when a landlord kicked them out using a section 21 notice - where a renter is evicted after a tenancy ends or during a tenancy with no fixed end date.
A pro-renters rights group has called on the government to get rid of this legal loophole which lets landlords evict tenants with just two months notice and without a valid reason.
The report calls for a review of the way housing benefit is calculated so it can cover private rents, and for councils to work with private landlords to encourage the supply of more homes with affordable rents.
If you find you can't afford private rent anymore, you can - but there's usually a long waiting list and it's not guaranteed your local council will be able to find you a property.
David Smith, policy director for the RLA said: "The private rented sector can play a key role not just in housing the homeless but preventing people becoming homeless in the first place.
"Action is needed on a number of fronts to boost the supply of homes to rent to meet demand and reform the benefits and the court system to give confidence to both tenants and landlords."
A Government spokesman said: “Everyone deserves a safe and secure home and we are investing £1.2bn to tackle all forms of homelessness.
"We are reviewing how local housing allowance may affect affordability and we continue to spend £24bn on housing benefit a year while also providing targeted support for low income households."
More on Money
The Government's flagship benefits system, Universal Credit, is being slowly rolled out across the country, but has been beset with problems already.
It is replacing six types of benefit including housing benefit, child tax credits and income support.
Millions more are set to go onto it next year, and it will roll six benefits into one single payment.
Brits have already had to wait months for their payments to begin, and some have been forced into food banks and risked losing their homes as a result.
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