Housing benefit cap could abandon children to poverty
Monday, 10 October 2011 10:14 AM
Plans to cap household benefits could throw thousands of children into poverty, the National Housing Federation (NHF) warned today.
The controversial proposal within the Welfare Reform Bill would affect 200,000 families nationally; however those in areas with high property prices such as London would be particularly badly hit.
Households could lose up to £5,000 a year under the cap, which is due to be introduced in 2013.
A typical family with three children residing in inner North London and operating in the private rented sector could find themselves with just £160 a week to live on once they have paid their rent, leaving them £229 below the poverty line.
Liz Hall, London lead manager for the NHF said: "Thousands of low income families across the region will be left with a stark choice if these proposals go ahead: move out of your home to a cheaper area or stay put and live in hardship or debt.
"This policy will penalise many more children than adults, blighting the life chances of large pockets of the youngest generation."
The NHF said that the cap fails to take into account the "significant variations" in income and housing costs across the country and "excessively penalises" houses with children.
The warning comes at the start of their Welfare Action Week. Many tenants and landlords plan to campaign against reforms and highlight the "harsh reality" of the changes to housing benefit.
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