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Housing benefit cut will hurt London’s homeless, warns London Councils
The Department for Work and Pensions' decision to cut housing benefit caps in the capital by 10 per cent for 2008/09 will see the boroughs' homelessness prevention work lose out on millions - warns London Councils.
The proposed cut is of grave concern to London's local authorities as it comes on the back of a 5 per cent cut from 2007/08.
Boroughs currently recycle savings from housing benefit to fund their homelessness prevention work, reducing the overall housing benefit bill. For the current year, London's boroughs have budgeted in the region of £60 million to tackle homelessness, but will receive under £22 million in homelessness grant.
Boroughs have little opportunity to make up this shortfall, especially considering the last two local government finance settlements have left two thirds of London's boroughs with the bare minimum increase in government funding.
The leaders of London's local authorities are particularly concerned that the DWP's planned cut will prevent the boroughs from meeting the Communities and Local Government 2010 temporary accommodation target.
In the last year, London boroughs were able to move 3,000 households from temporary accommodation - but this work will prove difficult if the DWP presses ahead with its plans.
Commenting on the proposed cut, London Councils Executive Member for Housing, Councillor Jamie Carswell said:
"We are hugely disappointed that the DWP has decided to single out London with another reduction to housing benefit caps. It is particularly frustrating that they have chosen London, the region with the highest levels of homelessness, and the greatest demand placed on its housing than anywhere in the UK.
DWP's proposed cut will see boroughs lose out on millions of homelessness prevention cash and our ability to protect the most vulnerable members of our society will be severely limited. I urge them to reconsider."
As part of the drive to meet the government's target to end the use of bed and breakfast accommodation, councils have increasingly looked to secure a supply of better quality temporary homes in the private sector, often through private sector leasing schemes.
London's high cost of living makes this an expensive undertaking - and the government reimburses boroughs for some of the costs incurred through housing benefit subsidy, which is capped at different levels for each local authority.
Private sector leasing has proved highly successful in London, with some 3,000 homeless households moved from temporary accommodation to more secure housing in the last year.
The proposed cut, which applies only to London, to the housing benefit cap was announced in a DWP Housing Benefit and Council Tax Benefit Circular earlier this month.
For press enquiries please contact: Chris Hogwood on 020 7934 9757 Chris.hogwood@londoncouncils.gov.uk Fax 020 7934 9777
For non-media enquiries contact: London Councils, 59½ Southwark Street, London SE1 0AL Tel 020 7934 9999 www.londoncouncils.gov.uk
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