Newham Plans to 'Export' 500 Families Blocked

A housing association in Stoke-on-Trent is set to block a London borough's request to take on 500 families in "immediate need" of a roof over their head and fears such a move could lead to the rise of "divisive right-wing extremism".   Labour-run Newham council says the Government's decision to cap Local Housing Allowance (LHA) rates is "exacerbating the problem" and making it harder for low-income families to get a roof over their head.  The news coincides with a survey from the National Landlords Association (NLA) last week which found that the majority of private landlords say they can’t afford to rent to housing benefit claimants because of the caps to the LHA.  It's understood Newham has written to the Brighter Futures Housing Association in Stoke, offering it the "opportunity" to lease homes to it, where it would pay it 90% of the LHA plus £60 per week.  Brighter Futures estimates the scheme could save Newham Council £5,250 a year for a family housed in a three-bedroom home.  Read a copy of the Newham letter on the Guardian website.