William Eichler 22 May 2017

Social tenants face multi-million pound rent gap from benefit reform

Social tenants face multi-million pound rent gap from benefit reform image

Thousands of young people in Scotland could face a £22.6m rent gap from planned housing benefit reforms, research reveals.

An estimated 21,000 social tenants across Scotland aged under 35 could be adversely affected by UK Government plans to cap housing benefit for social housing tenants from April 2019.

According to an interim report on the impact of the Local Housing Allowance (LHA) cap on young people in Scotland, commissioned by the Scottish government, these young tenants could collectively face a rent affordability gap of up to £22.6m annually.

The Government proposes to bring payments for social housing tenants in line with those living in the private rented sector.

Legislation to implement these proposals has yet to be introduced. However, as they currently stand, single people under 35 years of age will see their allowance capped at the Shared Accommodation Rate (SAR).

The Chartered Institute of Housing in Scotland, the think tank that carried out the research, found comparing DWP claimant data on average awards received by young Housing Benefit claimants with the SAR produces an annual estimated rent gap across Scotland of £22.8m.

Housing Association rents are typically higher than local authorities and so will be affected more by the proposed LHA cap.

Commenting on the findings of the interim report, CIH Scotland executive director Annie Mauger said: ‘Identifying how we might mitigate against the negative impact of the LHA cap on younger social tenants is an ongoing work in progress and a final report will be published at the end of July.

‘But this interim report clearly shows the potential scale of the problem across Scotland.

‘The intention behind this report is to be able to show exactly how social tenants aged under 35 will be affected and hopefully to exert some additional pressure on the UK Government to change its plans before they are due to enter into force in April 2019.’

Overcoming the barriers to Commercial Card use image

Overcoming the barriers to Commercial Card use

Want to reap the benefits of Commercial Cards but coming up against some challenges? James Sykes, Head of Commercial Cards, Lloyds Bank and David Legg, Head of Corporate Card Products, Lloyds Bank, discuss how the payments industry is helping organisations unlock their true value.
For your free daily news bulletin
Highways jobs

Environmental Health/Environmental Protection Officer - Noise

Tower Hamlets London Borough Council
£41,607.00 - £44,598.00
This post attracts an essential car user allowance. The post holder is able to take part in the Council's flexible working scheme. Tower Hamlets, London (Greater)
Recuriter: Tower Hamlets London Borough Council

Director of Financial Services (Deputy Section 151)

London Borough of Waltham Forest
£110,118 to £118,864
his is a great opportunity to develop the skills and knowledge that will lead to becoming a Section 151 Officer. Waltham Forest, London (Greater)
Recuriter: London Borough of Waltham Forest

Director of Business Development

North Yorkshire County Council
50-60k + relocation allowance
We are looking for a dynamic and innovative person to help us deliver our ambitious new strategic objectives set out in... North Yorkshire
Recuriter: North Yorkshire County Council

Strategic Service Manager - Bridgend Youth Justice Service

Bridgend County Borough Council
£44,863 - £45,859 per annum
An exciting opportunity has presented to lead Bridgend Youth Justice Service. Bridgend (Pen-y-bont ar Ogwr)
Recuriter: Bridgend County Borough Council

Corporate Property Surveyor

Ashford Borough Council
£34,476 to £37,158 pa - plus Lease Car or Cash alternative of £2,080 pa
Ashford Borough Council has a long and proud record of driving high quality place making. Ashford, Kent
Recuriter: Ashford Borough Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue