Cuts to the funding of council-owned temporary
accommodation will cost local authorities across Britain tens of millions of
pounds. Currently, if councils use their own housing stock as temporary
housing, they pay for the accommodation themselves and claim the money back
from the DWP through what is known as a rent ‘rebate’ system. However, a circular recently released by the
DWP outlined that under universal credit, the amount councils can claim will be
restricted to the rate of local housing allowance plus £45 per week. Temporary
accommodation owned by private providers and housing associations is already
limited to similar restrictions. Councils have said this doesn’t take
furnishing and maintenance costs into account. Download a copy of the circular
from the GovUK website.
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