Benefit cuts will bring rise in the bill for our homeless

Published: 30 September, 2010

• MANY people are unaware that cuts in housing benefit will affect council, housing association and private sector tenants (True cost of cutting housing benefit, September 23). Private sector tenants living in high-rent areas and those on limited incomes will be hit particularly hard.

The government’s proposal to cap the local housing allowance (LHA) will reduce housing benefit payments in Camden by almost £6million a year. This will severely affect the supply of private rented homes, especially family size accommodation, and will force tenants to seek alternative accommodation, possibly out of London.

Camden Council estimates that the out-of-borough rehousing of residents in housing need (and on low incomes) will rise from the current 30 per cent to between 50 and 70 per cent in 2011-12 and that this will increase in following years.

Camden has already started to restrict supporting tenants to secure private accommodation in the more expensive southern part of the borough, thus creating ‘no-go’ areas for some tenants in housing need.

A council report on the effect of the changes fails to assess the real cost of introducing the reforms. It also fails to address adequately the impact of the reforms on neighbouring boroughs, as well as the enormous challenge faced by Camden’s workforce in delivering a responsive and effective service. Research is needed, at a local as well as a national level, to determine the true impact of the cuts.

Undoubtedly, one of the worse casualties will be homeless families, many with children, who risk being shunted to sub-standard housing outside the borough, fueling further financial hardship at a time when the government has pledged to end child poverty by 2020.

Perversely, at a time when boroughs like Camden are faced with making unprecedented cuts to public services, the knock-on effect of the reforms could result in increased spending on tackling rising homelessness and demand for health and social care.

It is certainly praiseworthy that Camden Lib Dems have secured additional funding to help families hit worst by the government caps (and this funding may be needed if the reforms go ahead) but tough decisions will still need to be made about how this limited funding is spent. One can only wonder whether it might have been more beneficial for the people of Camden if more time had been spent arguing against a government policy which is essentially flawed. 
Petra Dando 
NW5