Citizens Advice response to DWP assessment of the impact of housing benefit cuts

Citizens Advice housing policy officer Liz Phelps said:

“The government’s own assessment confirms many of our worst fears about the impact these cuts to housing benefit will have, and the dangers of rushing through fundamental changes on this scale without consultation or any pilot schemes to test the effects. We would urge the government to reconsider these changes to ensure it meets its own test of ensuring fairness and protecting the most vulnerable, at the very least applying the proposed cap to new claims only.

“There can be no doubt that the combined effect of these cuts will lead to a sharp increase in rent arrears and homelessness, with the potential to spark a housing crisis in places such as London where the cuts will have the biggest impact.  Among those worst affected will be some of the most vulnerable households and people doing low paid but vital work in the capital. Only seven per cent of rents in central London will be affordable within the new housing benefit limits.

“Last year Citizens Advice Bureaux dealt with over 220,000 housing benefit problems. We already see many people on very low incomes who are renting in the private sector – often through necessity rather than choice – and who struggle to make up a shortfall between their housing benefit and their rent, getting into arrears as a result.  Added to this, many private landlords are already unwilling to let to anyone on housing benefit, and these cuts will make them even more reluctant to do so. People on housing benefit will find themselves between a rock and a hard place – unable to afford their rent, but unable to move because they can’t find another landlord prepared to let to them, so much more likely to become homeless.

“Worryingly, the government’s impact assessment skates over some potentially major effects of the changes. Rent arrears and evictions are likely to rise sharply once the changes come into force, yet there is little consideration of the impact on local councils, whose homelessness services will be under enormous increased pressure, with reduced scope to find housing solutions in the private rented sector because of the cuts – and all this at a time when local authorities themselves will be facing budget cuts.

“Nor is there any assessment of the impact on the private rented market. The Minister has expressed the hope that the cuts will result in a reduction in rent levels, but no information has been provided to support this view.

“The four bedroom cap will disproportionately hit black and minority ethnic families where larger, multi generational households are more common. Yet the Impact Assessment fails to assess the discriminatory impact of this.

“The assessment also finds little to say about the impact on children and child poverty, although it acknowledges that families will be disproportionately affected by the caps and the removal of the five bedroom rate. London councils calculate that nearly 80% of households affected by the cap in London will be households with children.  If they have to move, this could mean disruption to schooling, loss of access to friends and local social networks and, for the most vulnerable, disruption in the provision of health and social care support.”

Notes to editors:

1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see www.adviceguide.org.uk
3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2009 to March 2010, an 18% increase on the previous year. For full 2009/2010 service statistics see: www.citizensadvice.org.uk/press_20100517
4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.
6. Volunteer hotline 08451 264264 (local rate)

http://www.citizensadvice.org.uk/press_20100723