Almost one in five households on benefits have reported falling behind on rental payments, i can reveal
Almost one in five low income households receiving benefits have reported falling behind on rental payments, according to new figures, seen byAnd inflation data released this week showed that private rents for those who do not live in social housing are still increasing.Reeves did not announce an increase to Local Housing Allowance – the rate used to calculate the maximum amount of support for private renters on benefits – in the recent Budget.
According to the most recent Government data, as of May 2024 around 1.5m households renting privately received housing benefits. 678,799 of them had a shortfall between their LHA and rents. It found 19 per cent are in arrears with their rent, compared to 15 per cent of low income private renters not in receipt of housing benefits and 42 per cent are in arrears with other household costs or credit commitments.
“It doesn’t work at all if it is always out of step with local rents, and particularly for lower income households where your housing costs take up such a huge proportion of your income.” And the organisation said in the coming year alone as many as 20,000 renters, including 10,000 children, will be pushed into poverty.
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