Landlords warn against post Brexit welfare cuts

Speaking at Housing 2016 in Manchester today, social landlords said planned benefit changes, such as the reduction of the benefit cap to £20,000 (£23,000 in London), would stretch tenants to their limits already.

Prior to the EU referendum vote last week, economics experts such as the National Institute of Economic and Social Research (NIESR) warned poorer people would be hit harder by a Brexit vote as ministers implemented further cuts to the welfare budget.

It estimated that ministers would have to save £44bn, with cuts to benefit payments taking much of the load.

Julie Vickers, director of business support at New Charter, said: “It’s a difficult one, we’ve got a huge amount of cuts coming our way… I think with the benefit cap, with the move over to Universal Credit – I don’t think tenants will cope with it… If those cuts are much more, they will start to get into real affordability issues.”

She was responding to a question asking if tenants would cope with further welfare reductions following the vote to leave the EU.

Gary Hardy, head of income at Midland Heart, said: “I think over the next two or three years, we will see the real issues that are generated as they move across to Universal Credit and to cap it any more than what it is at the moment – people are clearly going to struggle.”

Tracy Langton, project lead on welfare reform at Northwards Housing, called on the government to put a pause on the roll-out of Universal Credit in order for tenants to adjust to future benefit cuts, such as the reduction of the benefit cap.

However, Ms Vickers added that the Department for Work and Pensions (DWP) had moved significantly to alleviate the effects of Universal Credit on tenants, following concerns from social landlords.