Homelessness and the Benefit Cap

Dear constituent,

Thank you for contacting me about homelessness and the benefit cap.

It is estimated that 227,000 private renters have fallen into rent arrears since the start of the pandemic and Citizens Advice has reported an increase in debt advice requests of 332%.

The benefit cap is pushing thousands of families into rent arrears and debt. I believe the Government should scrap the benefit cap to prevent further rent arrears and evictions at a time when families need support the most. Despite this, the Government has stated it will not be changing its benefit cap policy in light of the pandemic.

Although I welcomed the increase in Local Housing Allowance (LHA), I believe the Government should go further by raising LHA to the 50th percentile so that it covers average rents in each area. It needs to urgently consider every possible route to ensure people in rented accommodation have sufficient income.

The social security system we had going into the pandemic was a safety net with too many holes in it. We must consider how we can widen the safety net so that everyone who needs support gets it. I therefore believe that in addition to the points above, the Government needs to commit to ending the five-week wait for Universal Credit (UC). The continued failure to change the initial loan into a grant threatens to create even more of a debt crisis among households. In addition, the two-child limit for benefits should be removed and I believe the £20-a-week increase in UC should continue after the pandemic. I am also concerned that unlike UC, there has not been an increase for people on legacy benefits.

Although originally launched on 21 July, the status of the coming Spending Review is currently unclear. It will take time for people to recover from the pandemic and they need support to prevent what would be an unprecedented and devastating spike in homelessness. In the long term the housing crisis needs to be fixed – with stronger rent regulations and much more affordable and social housing – so that everyone has a home that is safe, secure and affordable.

Thank you once again for contacting me about this issue.

Yours sincerely

Peter Dowd MP