Low-Income Families in Private Housing Face Large Benefit Shortfalls

More than 300,000 low-income working families face a housing benefit shortfall, leaving them in some cases hundreds of pounds behind on rent each month. Research by Shelter predicts that 80% of working households claiming support to help meet soaring private-sector rents will be affected by the four-year housing benefit freeze announced in July’s budget. The research estimates typical rents for a two-bed home at the lowest end of the market in each local authority area in 2019-20, and compares this figure with maximum local housing allowance (LHA) rates for each area, which will be frozen from April 2016. The study shows that the monthly gap between private rents and LHA on two-bed homes in the cheapest areas of each authority will be significant in growth areas such as Cambridge (£529), Manchester (£240), Bristol (£236), Luton (£155) and Birmingham (£107). Read more on the Guardian website.