Maybe it’s because I’m a Londoner The impact of LHA changes and the benefit cap on London.

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Presentation transcript:

Maybe it’s because I’m a Londoner The impact of LHA changes and the benefit cap on London

Poverty in London The poverty rate in London is 28% compared to 22% of the rest of England, and the gap has grown in the last decade 220,000 households in overcrowded accommodation, up 60% in the last decade Proportion of households in temporary accommodation 10 times higher than the English average, 75% of English households in temporary accommodation in London, most in PRS

LHA changes - April 2011 LHA rates set at 30 th percentile LHA rates capped at: –One bed shared or self contained £250 –Two bed £290 –Three bed £340 –Four bed £400 LHA rates capped at 4 beds Extra room for carer £15 excess removed

Other changes LHA rates uprated on basis of CPI Household benefit cap - £500 per week per household, from April 2013 WTC, DLA/PIP exempt WRA received Royal Assent 8/3/12

Effects on London Overall LHA cap and 4 bed rate – of 21,000 claimants likely to be affected, 17,410 from London – average loss £81 per head Household benefit cap – 54% of affected households in Greater London – mean reduction £83 per week, median reduction £56 per week 17,000 households subject to household benefit cap also subject to LHA cap