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Universal credit cut will hit renters say NRLA and businesses

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The government must publish a renters impact assessment of their decision to freeze local housing allowance and cut the temporary £20-a-week rise to universal credit, says the National Residential Landlords Association and a range of charities and businesses.

These extended benefits – introduced at the onset of the pandemic – end in September and several organisations argue will hit “people’s security of tenure and well-being and for many will threaten their chance of recovery”.

Bodies such as Nationwide, the Mortgage Works, Crisis, the Big Issue, the NRLA and StepChange, have urged the government to reverse the decision in a joint statement.

The organisations say: “With the economic impact of the pandemic increasing the financial strain on families, across the country the number of private rented households in receipt of the housing element of universal credit increased by 107% between February 2020 and February 2021.

“Over 55% of these households have a shortfall between the housing support they receive and the rent they have to pay.”

They add: “The UK Government has confirmed that where such shortfalls exist, the median amount is £100 a month.

“This points to a need for continued support for families and individuals to cover the cost of rents.

“Yet since April this year, local housing allowance has been frozen in cash terms, and later this year, universal credit will be cut by £20 a week.”

The bodies call on the government to “reverse its decisions to cut universal credit and to freeze local housing allowance”.

The government says universal credit has provided a safety net for six million people during the pandemic, and the temporary uplift is part of a £400bn support package, parts of which will be extended beyond the ending of lockdown restrictions.

It adds that it will still maintain almost £1bn of additional housing support through local housing allowance rates.

Original Article

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