Peers Call For Review Of 1% Cap to Benefit Rises

Peers have called for the government to review its controversial plans to cap increases in benefits to ensure the private rented sector does not become unaffordable to welfare claimants.  Local housing allowance base rates, used to calculate housing benefit levels for private renters, will be capped at 1 per cent for two years from April 2014. Labour peer Baroness Patricia Hollis has called on the government to review the relationship between benefits and market rents every year. She called for the government to publish a review each year and for the secretary of state to change the policy if there is ‘a divergence between rent levels in the private rented sector and housing welfare benefits’.  Baroness Hollis cited figures from the National Landlords Association showing that nine in 10 private landlords are reluctant to let their properties to people on benefit.  Read more on Inside Housing.