Housing benefits leave private renters with £75 a month to find
People on housing benefits in Sunderland are being forced to find an extra £75 every month to put a roof over their heads, new analysis suggests.
Figures from youth homelessness charity Centrepoint show people renting from private landlords who are eligible for housing benefits in the will receive £272 per month from the local housing allowance this year.
Themedianrentforaroom in a shared house in Sunderland is £368, while the cheapest25%ofrentscostupto£347.
Housing allowance would cover just 78% of that price – leaving people needing to find an extra £75 per month.
Local Housing Allowance is a housing benefit payment made to those eligible for Universal Credit and is meant to cover the cheapest 30% of rooms in a shared house on the private rental market but Centrepoint say one in 13 local authoritiesinEnglandprovide sufficient housing benefit for people living in their area.
The charity says that, without the Government raising housing benefit rates, people face homelessness amid soaring rental prices.
Nationally,sayCentrepoint, the average shortfall is more than £90 a month.
Alicia Walker, head of policy, research and campaigns at thecharity,said:"Manyvulnerable young people rely on UniversalCredittokeeparoofover their heads.
"If you’re on a low or fixed
income, no amount of clever budgeting is going to help you findanadditional£100ormore
to cover the rent.
“Without the Government increasing rates immediately, manyofthemcouldfacelosing their home."
ThelatestOfficeforNationalStatisticsfiguresshowprices
for all rental properties in the North East have increased by 4.1% in the year to January, whileaveragerentsacrossEngland have risen by 4.3%.
A Department for Work and Pensions spokesperson said: "During the pandemic, we increased Local Housing Allowance significantly and beyond inflation, benefiting over a million households by an average of over £600 over the year.
"We’re maintaining that boost, keeping support for private renters above prepandemic levels.”
They added: "The benefit cap provides a strong work incentive and ensures fairness for hard-working taxpaying households by encouraging people to move into work where possible.”