Charity Loses Legal Challenge to Housing Benefit Cuts

A charity has lost a legal challenge it brought against the Government over housing benefit cuts. The judicial review - brought by Child Poverty Action Group (CPAG) - challenged two changes to the housing benefit rules for tenants in the private rented sector, which came in this April. It challenged the decision to cap Local Housing Allowance (LHA) rates and the cut in the number of bedrooms that can be covered by housing benefit to four. CPAG lawyers argued that the cuts challenged the fundamental purpose of the national housing benefit scheme - which is to prevent homelessness. It also argued that the cuts failed to have due regard to equality legislation because ethnic minorities and lone parents will be disproportionately hit by the two cuts being challenged. Evidence was produced to show that around 9,000 London households will have to leave their homes as a result of the caps, and that about 4,600 will be unable to find anywhere else to live “locally”. CPAG argued that this could mean upwards of 20,000 children having to move, 14,000 out of their local area, resulting in disruption to education, health and social services. Mr Justice Supperstone dismissed CPAG’s claim. He agreed with the Government that the purpose of the housing benefit scheme is not to prevent homelessness, but to help claimants with their rent whilst also protecting the public purse. He has also held that there is nothing in the statutory scheme to prevent the government from setting an overall cap in this way. By preparing an Equality Impact Assessment he held that the government had “due regard” to the need to eliminate unlawful racial discrimination but that they were entitled to make the changes despite their disproportionate impact.