Housing benefit reform is proving controversial. New analysis shows many of Britain's cities will bust the new government caps within years. Nearly a third of councils will have households that face immediate losses of £50 a month as the government housing benefit cuts begin to bite. The Guardian has obtained two analyses by Shelter and the Chartered Institute of Housing to examine the short term and long term repercussions on households of the proposed changes. The government wants to cap housing benefit at £400-a-week for the largest homes or £290-a-week for two-bed flats. It will also cut the amount of the allowance so that it was pegged to the bottom third of rents in any borough. Another concern is that future increases to local housing subsidies will be linked to retail price inflation, rather than rents, which will further erode the value of the benefit. See what impact HB Reform will have on your local authority area on the Guardian website.
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