Written evidence submitted by Barnardo's
INTRODUCTION
1. A large number of families we work with are
living in poverty and in recent years we have done a significant
amount of research and campaigning work to highlight the problems
that children growing up in poverty face. In particular in early
2009 we published "Below the Breadline", a year long
study which followed 16 families, and provided a detailed insight
into the day to day lives of children growing up in poverty.[96]
Housing problems are a major difficulty for many poor families,
and many of the children in the study were living in overcrowded,
unsuitable and isolated accommodation. It is critical that housing
is considered as a key part of the Government strategy for tackling
child poverty if the target of eliminating child poverty by 2020
is to be achieved.
2. We are concerned that significant consideration
has not been given to the impact that reforms to local housing
allowance payments are likely to have on child poverty rates.
The impact assessment (paragraph 51), recognises this possible
impact when it states:
"Any reductions in benefit incomes for families
will have an adverse impact on work to reduce child poverty and
[…] children's schooling could be affected. The department
intend to take forward further analysis on this aspect"
Barnardo's believes that it is imperative that this
analysis is undertaken, particularly in light of the Chancellor's
assurances within the Budget speech that child poverty levels
would not rise as a result of the measures announced.
EXECUTIVE SUMMARY
Barnardo's believes that the Government should:
- revisit the maximum levels of housing benefit
levels proposed and analyse whether they are realistic in all
areas of the UK;
- give careful consideration to the impact these
changes will have on housing availability, particularly in areas
with high housing costs; and
- consider how to counteract the pressure these
changes will put on the availability of affordable housing in
the central and outer London areas.
A new upper limit will be introduced for each
property size, with upper limits set at between £250 and
£400 a week
3. The housing benefit absolute cap will affect
many families currently housed in central London. Barnardo's runs
a temporary accommodation project in the capital and many of the
service users who use this project find it impossible to find
accommodation at less than above market rents. This includes many
families who are renting ex-council flats which have been bought
by private investors and let out at rents in excess of £400
a week. We feel that this, combined with the decision to measure
rates generally at the 30th percentile of rents within
each broad market rental area, will have a significant effect
on housing availability in the central London area, with a significant
knock-on effect on the housing supply in outer London areas (see
below). Barnardo's would urge the Government to revisit the
level of this cap to ensure it is workable in all areas of the
UK, particularly within the capital where housing costs are notoriously
high, and which itself has very high levels of child poverty.
The Local Housing Allowance will be set at the
30th percentile of rents in each broad rental market area (BRMA),
rather than the median
4. We are concerned that effects of the overall
caps on rents will be made worse by the proposal to restrict the
calculation of payments at the 30th percentile of rents in a BRMA,
rather than the median. Barnardo's believes this will have a profound
effect on areas with high property prices, most notably the capital.
Currently, on the Government's own estimate, 52% of properties
in central London are available to benefits' claimants because
they are within the local housing allowance levels. This will
reduce to 7% under the proposed reform. This will place a significant
additional pressure on the availability of properties to rent
in all the inner and outer London boroughs. However, these areas
themselves are estimated to see a reduction in their housing stock
with a fall properties available at local housing allowance levels
of between 17% and 26%.
5. It is acknowledged (Para 57 page 17) that
there will need to be liaison between boroughs in London to ensure
that there is a smooth transition. Barnardo's is concerned that
if this does not happen then there is a significant risk that
many already vulnerable families will be left homeless, competing
for the relatively small amount of housing stock in a new area,
against the areas existing population.
6. Barnardo's is also concerned that the effect
of these proposals will be more keenly felt amongst certain ethnic
groups. Despite The Equalities Impact Assessment's (Appendix C)
claim that the cumulative impact of the changes will not disproportionately
affect one group more than another, we are concerned that this
is not the case in London where ethnic minority communities often
live in highly localised areas, some of these in central London.
One group we know well is households from a number of Arabic communities
who live in the area around Edgware Road. It is likely that most
of these households will have to move.
7. Barnardo's urges the Government to consider
what more can be done to increase the housing stock available
to Local Housing Allowance claimants in the London area, to ease
the burden that a possible 45% reduction of available housing
stock will cause on central London areas.
6 September 2010
96 Barnardo's, Below the Breadline: A year in the
life of families in poverty (July 2009), available online
at http://www.barnardos.org.uk/11325_breadline_report_final.pdf. Back
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