Welfare Cut Could Push More People into Housing Crisis

The head of one of the UK’s largest affordable housing providers has said welfare cuts outlined in the Budget could see affordable housing become unaffordable to people on the lowest incomes. Mark Henderson, Home Group chief executive, claimed the welfare cap outlined by George Osborne could see increasing numbers of people struggle to keep a roof above their heads as housing benefit could fail to keep up with minimum increases in housing costs. Mr Osborne outlined a welfare cap of £119bn in 2015/16 which in future rises will be limited to whichever is the lower between the Consumer Price Index or a rise of 1%. With Government setting annual affordable rent increases at CPI +1% Mr Henderson fears those on the lowest incomes will see an ever widening gap in their incomes and the cost of their rent. Read more on the Home Group website.