Review assesses effect of benefit caps
The government’s £26,000 cap on the benefits a workless family can claim will provide ‘strong incentives’ to return to work, a new report suggests.
The Chartered Institute of Housing’s annual UK housing review also said the cap, under which housing benefit payments will be squeezed to fill the gap after all other benefits are paid, would restrict access to both the private rented sector and intermediate rents for out-of-work families. A couple with four children would only receive £150 a month in housing benefit under the cap, which comes into effect from 2013.
As housing benefit forms a vital part of housing associations’ income streams, the report recommended that landlords consider how to help their tenants back into work.
It said: ‘Tackling worklessness suddenly becomes a financial as well as a social imperative for landlords.’