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From last week, benefits will be capped at £20k a year. An estimated 100,000 households will be affected by a cut in their housing benefits, the majority of them in London. Experts fear that many tenants living in the private sector could face losing their homes because they can’t afford the rent.
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Punitive Tax Changes for Landlords
Rents have risen sharply in the last three years, and due to new tax changes introduced by the government, landlords have had no choice but to hike rents again, as it’s the only way they can cover their extra costs.
Some households could lose as much as £115 a week, which will leave many vulnerable families struggling to pay the rent. Once a tenant falls into significant arrears, landlords have no choice but to evict them. Other landlords are likely to stop letting properties to tenants in receipt of benefits because of affordability concerns.
Benefits Not a Lifestyle Choice Says Government
Despite fears that thousands of tenants will be left homeless, the government insists that a cap on benefits is the only way to encourage benefits claimants back to work. They say claiming benefits should not be a lifestyle choice and capping benefits payments brings the figure more in line with the average net salary.
The Department of Work and Pensions says it is making it easier for benefits claimants to go back to work, as anyone working 16 hours a week is entitled to free childcare and other incentives.
