Housing benefit reform creates poverty trap

The government’s new housing benefit system is creating poverty traps in the outer north eastern boroughs of London, research by HHSE found. The local housing allowance (LHA), which is replacing the housing benefit in the private rented sector will leave many tenants with a significant shortfall in rent, which they will either have to find themselves, or move into poorer areas where the benefit will cover their costs. The research also found that a majority of landlords are unwilling to let properties to LHA claimants in areas they can afford. Full details in the March/April issue of LPW, out next week.