After comparing the cost of renting in each local authority area in England, using Local Allowance rates, with benefit data, the Chartered Institute of Housing has analysed the lowered cap which comes to effect on Monday 7th November, 2016.
According to Inside Housing, the CIH research made the following findings:
The cap is estimated to be lowered from its present level of £26,000 a year to £23,000 in London and £20,000 in the rest of England
The new cap will hit 116,000 families and affect 319,000 children
The new cap will hit thousands of people even in areas of the country with the lowest housing costs
A total of 5,844 families will be affected in Wales and 5,293 in the North East
Over 18,000 will be hit with 5,570 single-parent families affected
Private renters with large families will face the most severe cuts
Chief executive of the CIH, Terrie Alafat, said:
“The results of our research are extremely worrying. It shows that the reduction in total benefits is going to hit some of the most vulnerable families of all sizes across England, Scotland and Wales.
“These families lose out when the cap comes into effect from 7th November and in many cases will straight away face a substantial gap between their rent and the help they receive to pay for their housing.
“Worryingly, our analysis shows many families could be one redundancy or a period of ill health away from being in this situation.”
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