Benefit Cap Puts Landlords’ Income at Risk

Social landlords have warned they face large drops in their income as the result of government plans for a £500-a-week cap on all benefits. The cap would leave some large families with less than £70 a week to fund their housing. The Treasury estimates the cap will affect around 50,000 families, who will lose an average of £93 a week. How the £500 benefit cap would work for an unemployed couple with five children claiming jobseeker’s allowance;
£102.75 couple rate for JSA
£24.59 council tax benefit (band C)
£231.63 child tax credit for five children
£73.90 child benefit for five children
£67.13 amount left for housing benefit

£98.22 average social rent per week in London*
£76.51 average social rent per week in England*
Source: Chartered Institute of Housing; *Communities and Local Government department. Read more on Inside Housing.