Benefit Cut Could Force Social Landlords to Turn Tenants Away

David Cameron’s pledge to cut the benefit cap from £26,000 to £23,000 if the Conservatives win the next election could force housing associations to turn away families in need of social housing. Chief executives of two major housing associations warned that the cut would jeopardise their tenants’ ability to pay rent, putting their main source of steady income at risk. Mick Sweeney, chief executive of One Housing Group said associations may be forced to abandon plans to build much-needed new homes as result of the change. They may also have to turn away certain tenants, he added. “We’re going to have to say, if they’re wholly benefit-dependent and they can’t afford even the sub-market or social rents that we’re charging, [then] we can’t house you,” he said. Elizabeth Austerberry, chief executive of Moat  said that rent was the biggest source of steady income for associations. Rental streams are already placed under threat by the introduction of universal credit. Read more on the Guardian website.