Social Security Benefits: Homelessness

(asked on 13th July 2017) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the effect of the reduction in the benefit cap in November 2016 on the level of homelessness since that date.


Answered by
Caroline Dinenage Portrait
Caroline Dinenage
This question was answered on 18th July 2017

I am replying to both questions as assessments of the effect of the benefit cap are the responsibility of the Secretary of State for Work and Pensions.

The new, lower, tiered benefit cap was introduced from 7 November 2016. The change reduces the total amount a working-age household can receive in benefits to £20,000 for couples and lone parents (£13,400 for single adults with no children) in Great Britain outside Greater London. Within Greater London the level is £23,000 for couples and lone parents (£15,410 for single adults with no children).

Evidence from the 2014 evaluation of the cap showed very little, if any, impact on homelessness as a direct result of the cap. In the cases of a small numbers of capped households who had been evicted, the Local Authorities noted that they had other reasons for rent arrears and they also failed to engage with relevant services, they were considered intentionally homeless.

The lower cap is still the equivalent of gross family earnings of £25k, and £29k in London. There are a number of exemptions, for example, for people receiving disability payments or people who work and qualify for Working Tax Credits. Discretionary Housing Payments can be made by local authorities to help people adjust to the benefit cap and those payments can be made to prevent people becoming homeless.

To help Local Authorities protect the most vulnerable and to support households adjusting to the reforms, the Government has provided around £900 million funding for the Discretionary Housing Payments scheme since 2011.

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