A charity has raised concerns over the inability of families with low incomes to meet their rental costs using the housing benefit provided to them. Wiltshire Citizens Advice, a prominent advocacy organization, revealed that housing advisors have identified a shortage of rental properties covered by the housing benefit.
Claire Waltham-Smith, a representative of Citizens Advice, disclosed that an alarming number of individuals are resorting to sacrificing basic necessities to meet their rental obligations. Some families are even facing the grim possibility of eviction due to their financial constraints.
The government has announced an allocation of £30 billion for housing support within the current fiscal year in response to this escalating crisis.
Describing the harrowing situation, Ms. Waltham-Smith emphasized, “People are being forced to make heart-wrenching choices, such as cutting back on energy or food, resulting in rent arrears and looming eviction.”
Typically, individuals with limited incomes are eligible for Universal Credit, which includes a housing element pegged to the Local Housing Allowance (LHA) in their respective regions. However, the LHA has remained stagnant since April 2020, while rental costs have surged by over 20% nationwide. Recent data indicates that rents surged by 5.3% in the past year alone.
During an observation at the Trowbridge branch of Citizens Advice, Ms. Waltham-Smith was seen meticulously scouring rental websites in search of an affordable flat for a young couple with a child. The mother holds a low-paying job, while the father grapples with illness and disability. Despite a monthly LHA of £650, the most affordable flat Ms. Waltham-Smith could find was listed at £850, with the majority exceeding £900.
She explained, “This leaves a glaring shortfall of £200 to £250 per month, an insurmountable gap for individuals on these limited incomes. They are faced with either sacrificing other essentials or falling into the abyss of rent arrears.”
A comprehensive survey of private rental listings across Wiltshire unveiled a disheartening reality, as the team discovered an acute scarcity of properties accessible through housing benefit. Ms. Waltham-Smith lamented, “Our search yielded a mere one or two budget-friendly one-bedroom flats, with no viable options available for families.”
The growing dissonance between housing benefit and surging rental costs continues to place vulnerable households at the precipice of financial instability, prompting urgent calls for policy intervention.
