New housing benefits cuts could leave people struggling to afford their rent according to MP’s. A report carried out by the Work and Pensions Committee found that some might find it hard to make ends meet between the benefit they receive and their rent.
The report went on to state that extra government funding could be needed by councils if people had to move, with predictions of a rise in homelessness thought to be inevitable.
The changes to housing benefits which were announced back in June by Chancellor George Osborne will see maximum weekly rates limited to £400 a week with payments being reduced by basing them on the cheapest 30% of properties in the neighbourhood rather than taking the average rent.
Anne Begg who chairs the committee said “The government hopes that people will be able to find cheaper accommodation in cheaper areas and that private landlords will be willing to reduce their rents to Local Housing Allowance claimants, so that the new levels will not result in an increase in homelessness.”
“However, it is too early to determine if this will happen in reality which is why it is hard say exactly what the impact of these changes will be.”
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