Cutting housing allowance and Universal Credit ‘will push renters into debt’, charities warn – iNews

Cutting housing allowance and Universal Credit will push renters into debt and poverty and ministers should come clean on the severe impact of such measures, charities and organisations have said.
The coalition of organisations, which included Crisis, Shelter, Nationwide and the National Residential Landlords Association, demanded the Government publish a full impact assessment of planned cuts to benefits.
They said applying such policies without assessing the fallout underestimates the detrimental effect of the cuts on renters.
Nearly 1-in-3 benefits claimants had to borrow more money to cover daily expenses during pandemic
The number of rented households receiving housing benefits increased by 107 per cent between 2020 and 2021 – with more than half (55 per cent) still saying the support they receive is not enough to cover their rent.
“This points to a need for continued support for families and individuals to cover the cost of rents.
“Yet since April this year, Local Housing Allowance has been frozen in cash terms, and later this year, Universal Credit will be cut by £20 a week,” the groups said.
“We are united in calling on the UK Government to complete and publish a full assessment of the impact of both of these policies on the ability of renters to meet their housing costs.”
The warning came from The Big Issue Ride Out Recession Alliance, Crisis, The Mortgage Works, Nationwide Building Society, the National Residential Landlords Association, Propertymark, StepChange Debt Charity and Shelter.
The Government said it had “taken unprecedented action to protect renters” including through increasing Local Housing Allowance rates.
A Government spokesperson said: “Universal Credit has provided a vital safety net for six million people during the pandemic.
“The temporary uplift is part of a £400 billion support package and has been extended beyond the ending of restrictions, while we will be maintaining nearly £1 billion of additional housing support through Local Housing Allowance rates.”
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