Eviction fears over housing benefit cuts

Fears have been raised that more Hackney residents will be homeless in the wake of proposed changes to the way benefits are paid. In the emergency budget in June this year, the new coalition government announced major changes to the housing benefit system.

Here at Hackney Citizens Advice Bureau, we are very concerned that the package of proposed cuts, particularly the Local Housing Allowance cap which affects private tenancies, will have a big impact on Hackney residents and will lead to an increase in evictions and homelessness in the borough.

Rents in Hackney for private accommodation have increased sharply in recent years, as the borough is such a popular place to live and so close to central London. Under the new measures, 93% of rents in central London will become unaffordable for private tenants who rely on housing benefit.

For those families living in private rented accommodation whose salaries or benefits don’t cover the rent, housing benefit is paid to make up the difference.  Many of the households in Hackney who are receiving housing benefit are working families.

The proposed cuts will limit housing benefit through a fixed cap applied across the UK, so in central London tenants in private rented accommodation will be more likely to see larger shortfalls in their payments. Citizens Advice has calculated that the average shortfall for central London households will be £81 per week, and it is estimated that around 1,500 residents in Hackney will be affected. For those in receipt of housing benefit who are already living on a low income, making up the shortfall may be impossible. Or it may become a choice between buying food, paying for gas and electricity or paying the shortfall in rent.

Once a private tenant starts to fall behind with their rent, their landlord is likely follow up by starting possession proceedings to evict them.  Private landlords will also come under pressure if their tenants fall into rent arrears, and may be unable to keep up mortgage payments.

Citizens Advice is working with local MPs and local authority housing departments across London to make the case for transitional protection for Londoners facing these shortfalls.  We’re proposing that the cap should apply to new claims only from April 2011, and that the proposed cap should only apply to all tenants from October 2011.

This would enable tenants already locked into tenancy agreements to make planned moves rather than being forced out of their homes through court action, losing deposits as well as  incurring court and moving costs in the process.  If no interim measures are provided, there is a serious risk of evictions and homelessness increasing across the capital. If you or anyone you know is likely to be affected by these cuts, join us in making the case for transitional protection for Londoners – write to your MP to outline how the changes are going to affect you, and ask your MP to campaign for transitional protection for Londoners.

If you need any help with writing to your MP or finding out how the changes may affect you, you can contact the social policy team at Hackney Citizens Advice Bureau at socialpolicy@eastendcab.org.uk.