Rents Must Fall If More People Are To Come Off Benefits

The government risks never achieving its aim of getting more people off benefits unless rents fall, according to the Chartered Institute of Housing (CIH).  Universal credit will give tenants in lower-paid work more disposable income by reducing the "poverty trap" in the current benefit system. And as a result more working tenants will receive universal credit than now receive housing benefit or tax credits.  But at the same time, rising rents in both the social and private sector will mean it is less likely that claimants can ever increase their earnings by enough to come off benefits.  The analysis comes from CIH’s UK Housing Review (UKHR) Briefing.  Download a copy of the briefing from the Housingnet website.