Poor face losing their homes in benefits cut
SOME of the poorest families in South Yorkshire face being forced out of their homes as charities say a 40 per cent cut to their housing benefit could leave them unable to afford their rents.
A family claiming housing benefit for a three bedroom privately-rented home in Sheffield could lose an estimated 193.32 a month following draconian changes to welfare payments, The Star can reveal.
Housing charities today warned the cuts will lead to more poverty, debt and homelessness. The small print of this week's budget has revealed a huge cut to the amount people receive in local housing allowances - the part of housing benefit which is paid to those in private rental accommodation.
Currently, the allowance for each size of property is about 50 per cent of the market rate for rent in a certain area.
But from October next year the allowance is being slashed to a third of market rates.
Under current rental prices, a family in a privately-rented two bedroom house in Sheffield will see their housing allowance cut from 113.92 a week to 68.35.
Those in a three bedroom house in the city will see their allowance cut from 120.82 a week to 72.49.
Similarly, in Doncaster, the allowance for a two bedroom house will be slashed from to 97.81 to 58.69.
Hard-pressed families face either having to fund the shortfall themselves or moving out and finding cheaper accommodation.
Liz Phelps, a Citizens Advice housing officer, has predicted the numbers of homeless people will soar.
"That is potentially the big one. It is very crude short term thinking," she said. "We will see a lot more rent arrears, a lot more debt and acute poverty, and then more homelessness."
Brightside Labour MP David Blunkett said: "Given the nature of private rented accommodation in my area, my constituents are facing firstly the unfortunate change in capital gains tax, which will reduce the likely availability of rented housing, and this assault on the housing allowance, which will push families out of their homes into smaller, cheaper ones.
"Larger families will be hit with a double whammy - less housing benefit, coupled with a greater likelihood of having to pay more in rent as housing shortages bite."
In a separate move, it has been disclosed that from April 2013 couples and lone parents in social housing will be forced to either downsize when their children leave home, or supplement their housing benefit.
Housing minister Grant Shapps has said major changes to the housing benefit system are designed to target those who are "choosing not to work as a lifestyle thing". But Labour leadership candidate Diane Abbott has claimed "only one in eight claiming housing benefit is unemployed".
Sheffield South East Labour MP Clive Betts believes the changes could increase homelessness in the city. He said: "It could be quite dramatic. People who are in more expensive accommodation will not be able to afford it. There are more people in very difficult circumstances who are having to privately rent.
"The pressure for private renting will continue to go up, the rents will then go up and, if they cannot afford it, they will be in trouble."
Councillor Simon Clement-Jones, Sheffield Council's Cabinet Member for Finance, said: "It is too soon to evaluate the impact the announcements in the Government's emergency budget will have for people in Sheffield.
"As always, our priority will be to work with Sheffielders to implement these changes as smoothly as we can. We will communicate all the relevant information to Sheffield residents affected by these changes as soon as we have the full facts."
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