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Families unable to afford food shop due to housing benefit shortfall, Crisis warns
Households across England are forced to give up a large part of their weekly food shop in order to pay the rent as a direct result of the four-year benefit freeze, new data from homelessness charity Crisis has revealed.
The data shows that the housing benefit shortfall, which is the amount of an individual’s rent not covered by housing benefit, equates to families having to give up at least a quarter of the national average weekly food shop for a small family in 70 of the country’s 152 ‘broad rental market areas’.
Broad rental market areas are designated by the government and are used to determine how much housing benefit private renters across the UK receive.
According to Crisis, central London has the highest housing benefit shortfall, as the average rent for the cheapest third of two-bedroom properties is £523.56 compared with a housing benefit rate of £320.74 – leaving a shortfall of £202.82. The average national weekly food shop for a small family (two adults and two children) is calculated at £59, meaning foregoing the weekly food shop will still not cover the shortfall for a London family.
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Outside of London, Cambridge experienced the highest housing benefit shortfall of £36, which equates to 61% of the average £59 weekly shop.
In Leicester, for example, the cheapest third of two-bedroom properties is £124.27, compared to the housing benefit which is £109.32, leaving a shortfall of £14.95. Once that shortfall is paid off there is only £44.05 left for the weekly shop, only 75% of the cost of an average weekly shop.
Crisis is calling on the government to increase Local Housing Allowance (LHA) levels, following a four-year freeze on the benefit which began in 2016.
In November, the government announced the freeze would end this April, from which date working-age benefits will rise by 1.7% – the current rate of the Consumer Price Index of Inflation. However, some critics have said merely ending the freeze is not enough and LHA rates need to be raise to cover the lowest third of all rents in a given area.
At the time of the announcement, Jon Sparkes, chief executive of Crisis, said lifting the freeze was not enough to help those unable to afford their rent, as LHA rates have fallen far behind the cost of private rent in large parts of the country.
Speaking today, Mr Sparkes said: “A safe and stable home is fundamental to our dignity and humanity, but every day we hear of people becoming homeless or being pushed to the brink of losing the roof over their heads because of the constant pressure of trying to cover the cost of their rent.
“Paying the rent means families have no option but to make huge sacrifices on other basic necessities. We cannot let this continue.
“Housing benefit is an important tool and could be the quickest and most effective way to prevent homelessness, but due to years of cuts and freezes it simply does not cover people’s rent.
“With the right policies and investment, we can end homelessness. We urge the new government to act now and invest in housing benefit.”
A Department for Work and Pensions spokesperson said: “Since 2011 we’ve provided local authorities with more than £1bn to support the most vulnerable with Discretionary Housing Payments, and in 2020/2021 we will make an additional £40m available.”
Muhammed Butt, executive member for welfare, empowerment and inclusion at London Councils and leader of Brent Council, said: “Families across London would have to forgo almost their entire weekly food bill to cover their rent in full. This is just not possible and, without additional support, the inevitable outcome is that families become homeless.
“Boris Johnson has rightly made tackling homelessness an urgent priority and London boroughs are determined to work with the government to make this a reality. However, this cannot be achieved until low-income households receive sufficient support to pay their rent.
“That is why we’re seeking a commitment from the government to increase Local Housing Allowance rates to cover at least the bottom third of rents.”
Update: at 9.20am 07/10/20 a comment from Muhammed Butt was added to the story.
