William Eichler 22 May 2017

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

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.’

SIGN UP
For your free daily news bulletin
Highways jobs

Occupational Therapist - Adult Social Care

Essex County Council
£38487 - £51834 per annum
Register your interest here to be notified of upcoming Occupational Therapist opportunities within Essex County Council's Adult Social Care services. England, Essex, Chelmsford
Recuriter: Essex County Council

Mechanical Design Engineer

Durham County Council
Career Grade 9 to 12 (G9 £35,412 - £39,152) (G10 £38,220 - £41,771) (G11 £40,777 - £45,091) (G12 £44,075 - £48,226) per annum
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recuriter: Durham County Council

Operational Support Assistant

Durham County Council
Grade 4 £25,583 - £26,824
We are looking to recruit an Operational Support Assistant to provide high-quality administrative and business support to frontline services within Al Durham
Recuriter: Durham County Council

Operational Support Assistant

Durham County Council
Grade 4 £25,583 - £26,824
We are looking to recruit an Operational Support Assistant to provide high-quality administrative and business support to frontline services within Al Durham
Recuriter: Durham County Council

Library Duty Manager

Durham County Council
Grade 6 £28,142 - £31,022 pro rata to hours worked
WHAT IS INVOLVED?   We’re looking for a permanent 16.5 hr enthusiastic and customer-focused Library Duty Manager to help lead the day-to-day operation Seaham
Recuriter: Durham County Council
Linkedin Banner