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As early as Christmas working households claiming support for private sector rent could outnumber those in which nobody works, says a new report published tomorrow (Friday 18 October) by London Councils.
‘Tracking Welfare Reform in London’ reveals that just under 50 per cent of households receiving benefit in private rented housing in the capital have at least one person in work.
If the number rises as expected London will be the only part of Britain where working households claiming benefits for private rented housing eclipse those where no-one is working. The report also found the number of people receiving help with their rent has fallen in inner London since May 2011, while in outer boroughs the number has increased.
Chair of London Councils, Mayor Jules Pipe, said: “Last year, private sector rents in inner London rose by 14 per cent, so it’s not surprising that more and more working families are turning to housing benefit to help them survive. Our latest research shows households claiming housing benefit, both working and non-working, are increasing in outer London and that is placing a greater burden on local services such as schools, transport, and social care.
“London Councils supports a fairer, more accountable system of welfare, but is concerned that the current reforms have the potential to be devastating for families and local services. We want the government to undertake a serious, full and fair assessment of the additional costs of welfare reform for London’s councils as soon as possible.”
London Councils, which represents the capital’s 32 boroughs and the City of London, is calling for London to be exempt from the below inflation rise in private sector housing benefit, known as Local Housing Allowance (LHA). It is concerned that the move, which will see LHA rates limited to one per cent growth for the next two years, could drive homelessness.
The report also found:
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