Impact of the changes to Housing Benefit announced in the June 2010 Budget
Written evidence submission by Centrepoint
Summary
·
Centrepoint has serious concerns about the proposed housing benefit (HB) changes and believe they are likely to lead to an increase in homelessness.
·
Young people will be particularly badly affected because those under 25 are entitled to 20% less Jobseekers’ Allowance (JSA) and Income Support than those aged 25 and over, and therefore have less income from which to make up shortfalls in rent.
·
Introducing a 10% cut in HB for those claiming JSA for over a year will be extremely damaging for young people who are already struggling to enter the job market, such as those with additional support needs.
·
JSA claimants are already subject to sanctions that ensure they are actively seeking work, making the proposed cut unfair.
·
30% of young people in Centrepoint supported accommodation would be affected, threatening their tenancies and their ability to move into work in the long-term, thus increasing their chances of becoming homeless again.
·
We therefore urge the Government to abandon these proposals or, at the very least, include an exemption for vulnerable claimants who are furthest from the labour market.
·
Setting Local Housing Allowance (LHA) rates at the 30th percentile rather than the median will have a serious impact on young people as the shared room rate for under 25s has already been found to be insufficient to find decent quality tenancies in many areas.
·
If LHA rates are calculated at the 30th percentile, even more young people will face a shortfall, putting them at risk of building up arrears and losing their tenancies.
·
It should not be assumed that young people will have access to the bottom 30% of rents as many landlords refuse to rent to HB claimants, so the reduction in rates will leave them with even more limited options.
·
LHA rates should therefore continue to be calculated at the median or, at the very least, the shared room rate should be exempted, due to the larger numbers within this group already facing shortfalls.
·
Uprating of LHA rates by CPI will mean that, over time, the rates do not reflect local rents and may put private tenancies out of reach of formerly homeless households and those reliant on HB.
·
Introducing caps to LHA rates is misguided without first building up additional provision of housing and support services in outer London for those who will no longer be able to afford central London tenancies.
·
Increasing non-dependent deductions above the rate of inflation could lead to more young people being forced to leave the family home.
·
Limiting HB in the social sector according to household size is unfair unless the household can be offered an alternative smaller tenancy.
·
While Centrepoint welcomes the increase in the Discretionary Housing Payments budget, this will be insufficient to plug the huge shortfalls in individuals’ housing benefit payments created the proposed cuts.
Introduction
1.
Centrepoint is the leading national charity working with homeless young people aged 16 to 25. We are a registered social housing provider, a charity enterprise and a company limited by guarantee. Established 40 years ago, we provide accommodation and support to help homeless young people get their lives back on track.
2.
We work with around 800 young people a day and have over 30 services across London and the North East. Young people can stay at Centrepoint for up to two years, during which time they receive intensive support to help them develop the skills they need to live independently. All of our work is informed by our distinctive support and development approach, which responds to young people in a holistic way. To meet the broad range of young people’s needs, our accommodation services are supported by specialist in-house learning and health teams.
3.
The majority of the young people at Centrepoint receive Housing Benefit (HB) to help them pay for their accommodation at our services. Most are also in receipt of other welfare benefits such as Income Support (IS), Jobseekers Allowance (JSA) or Employment and Support Allowance (ESA) to help them meet their basic living costs. Few young people we work with receive any financial support from family or friends, and many find it difficult to find work due to the chaotic nature of homelessness and a lack of qualifications. Many are therefore entirely dependent on welfare benefits to support themselves as they try to rebuild their lives and move towards employment and independent living.
4.
We welcome the Work and Pensions Select Committee’s inquiry into the Coalition Government’s proposed changes to Housing Benefit (HB) and Local Housing Allowance (LHA). We believe the proposals will have an extremely damaging impact on the young people we work with and lead to increases in youth homelessness. We are particularly concerned about the 10% cut after a year on JSA as this will impede the ability of young people in supported accommodation to learn to manage their support needs and move into work. We are also extremely concerned that the cuts to LHA will make it more difficult for young people to move on from our services when they are ready for independent living.
Housing Benefit awards will be reduced to 90% of the initial award after 12 months for claimants receiving Jobseeker’s Allowance.
5.
Introducing a 10% reduction in Housing Benefit (HB) for those who have been collecting Jobseekers Allowance (JSA) for 12 months will have a serious impact on young people throughout the country, including the young people that Centrepoint supports.
6.
A third (30%) of young people at Centrepoint have been claiming JSA for more than a year and would therefore be subject to this cut. In 2009/10 Centrepoint worked with 1386 young people, so more than 400 young people a year are likely to be detrimentally affected by the 10% cut. The impact would be felt across the homelessness sector, meaning the total number of vulnerable homeless people affected will be much higher.
7.
The proposed change will place a particularly heavy financial burden on young people under the age of 25 who receive 20% (£13.70) less per week in JSA than claimants aged 25 and over. These individuals therefore already have a lower income from which to make up a shortfall in rent, leaving them at greater risk of losing their tenancy and returning to homelessness.
Incentives to work
8.
Young people at Centrepoint are eager to work, and Centrepoint’s Workwise programme provides support to help young people find and sustain employment. However, due to additional support needs such as mental health problems, and disruption to their education during childhood, many young people struggle to find work, particularly at a time of high youth unemployment.
9.
Young people at Centrepoint suffer from a range of problems that act as barriers to employment. For example, many young people have mental health problems that can prevent them from engaging in job seeking activities such as attending interviews, and subsequently sustaining a job. Others face practical barriers such as poor literacy that make it harder to conduct job searches and complete applications. A significant proportion of young people at Centrepoint face such barriers, for example:
·
A third of young people at Centrepoint (33%) present with symptoms of a mental health problem
·
Over a quarter (28%) are known or suspected to use illegal drugs
·
Over a quarter (27%) have English as a second language, making it more difficult for them to engage with mainstream services
·
One in six (16%) young people at Centrepoint display a lack of basic literacy compared to only one in fifteen (6%) of all young people who left school without a basic level of reading and writing skills
·
One in ten (10%) Centrepoint young people have numeracy problems
·
One in five (20%) have a history of offending1
10.
This proposal with therefore punish the most vulnerable who are furthest from the labour market. These individuals will already be subject to sanctions under the existing JSA regime that ensure they are actively searching for work, making this additional cut unnecessary and unfair.
11.
Centrepoint statistics show that young people are much more likely to move into employment the longer than they have been at our services, but this can often take more than a year. Young people who have been at Centrepoint for over two years are more than twice as likely to be in work as those who have been in our services for a year to 18 months1. Cutting benefit after a year could therefore disadvantage young people at a very sensitive time when they are making progress towards work. Any resulting rears could risk reversing the progress made.
Rent Shortfalls
12.
We are extremely concerned about the impact on young people living in supported accommodation, such as Centrepoint services, many of whom have complex support needs. The average rent in Centrepoint services is £111 per week. If their housing benefit were cut by 10% they would have to make up £11 of their rent from their £51.85 JSA. This represents over 20% of this weekly income, so the cut would effectively mean their income falls by more than a fifth.
13.
As well as this rent shortfall, young people will also have to pay their service charge to cover costs such as utilities. The average service charge is £10 per week, which will leave them with only £30.85 to meet all their remaining costs including food, clothing, toiletries and travel. Centrepoint’s experience suggests that this is simply not enough, particularly for young people in our central London services who only have access to expensive town centre supermarkets.
14.
The effect will be even greater in our highest support services, and the additional needs of the young people in these services will make them even less likely to find work within a year. The rent at one of our high support services is £201 a week, which would mean that residents would stand to lose £20.10 per week under the changes. As these services provide food, the service charges are also high, in this case £26. After rent shortfalls and service charges, they would therefore only be left with £5.75 to meet all other costs such as travel, clothing, toiletries and any debt payments they may have.
15.
The changes will also have a serious impact on young people in the private rented sector, including formerly homeless young people who have moved on from Centrepoint services, many of whom will still be battling to overcome serious challenges and support needs. A young person renting a room in shared accommodation in Inner South West London, for example, would be forced to pay £11.50 in rent per week after a 10% reduction in their HB. This figure represents nearly a quarter (22%) of a young person’s weekly income, leaving him or her with only £40.35 per week to meet basic living costs, including utilities.
Effect on providers
16.
These changes could also have a serious impact on the financial viability of homelessness providers such as Centrepoint. Rents and services charges make up around a quarter of Centrepoint’s total annual income (£4,000,000 out of £16,000,000 total income). If 30% of young people at Centrepoint (and therefore of our rental income) was subject to a 10% cut, Centrepoint could stand to lose almost £130,000 a year. At a time when Supporting People contracts from local authorities are being cut by around 25%, this puts further strain on our finances. We exist to prevent youth homelessness and not increase it, so we do not want to evict people for arrears without giving them a chance to repay their debt over time, but if the problem becomes worse we will be in a difficult position as Centrepoint needs to remain financially viable.
Recommendations
17.
Centrepoint urges the Government to abandon its plans to introduce the 10% cut after claiming JSA for a year. Rather than being an incentive, it will be seen as a punishment for those who do not find work. Claimants in line for the 10% cut will already be subject to sanctions under the existing JSA regime to make sure they are actively seeking work, making this additional cut deeply unfair. Young people and those with additional needs are likely to be disproportionately affected due to the higher rates of unemployment among these groups.
18.
At the very least, Centrepoint believes that some sort of vulnerability exemption should be introduced to protect those furthest from the labour market through no fault of their own. A similar system already exists in the administration of the Local Housing Allowance (LHA), so an exemption to the 10% cut could mirror these criteria. While the default position is for LHA to be paid to the claimant, applications can be made for it to be paid direct to the landlord if the claimant is too vulnerable to handle the rent payments themselves. The criteria by which vulnerability is judged in this system can be found in Annex A. As local authorities are already administering this framework, it would require minimal expense to roll out a similar system for an exemption from the proposed 10% cut.
19.
This framework includes criteria such as a history of homelessness, mental health, substance misuse and language problems, meaning that the most vulnerable, such as the young people Centrepoint supports, would be protected from the cuts. This would be in line with the Government’s pledge to "limit the impact of cuts on the most vulnerable in our society".
20.
If such a vulnerability exemption is not possible, an exemption of residents in supported housing would be a good back-up option. This would protect vulnerable people in homelessness services and other supported housing funded by (what was) Supporting People.
21.
The cost to the taxpayer of such as exemption would be low as relatively small numbers would be eligible. In April-June 2010, 22,500 people entered Supporting People services (excluding floating support), but only a small proportion of these would have been on JSA for over a year, as many are older people or long-term disabled people who would be supported by a pension or incapacity benefit. In the same period, there were total of 796,000 people unemployed for over 12 months, so those exempted would represent only a small proportion of the target group. The overall aim of the proposal would therefore not be undermined.
22.
However, we believe that a wider vulnerability exemption as discussed above would be preferable, as a supported housing exemption would only protect vulnerable people in a particular sector, and may leave young people open to increased chance of eviction once they move on from homelessness services.
From October 2011, Local Housing Allowance rates will be set at the 30th percentile of local rents (instead of the 50th percentile).
23.
Setting Local Housing Allowance (LHA) rates at the 30th percentile rather than the median rent for a given Broad Rental Market Area (BRMA) will have a serious impact on young people throughout the country. With social housing becoming harder to access, the private rented sector is becoming an increasingly common route for young people moving on from homelessness services. Many young people leaving Centrepoint services will therefore be affected by these changes.
Rent Shortfalls
24.
Young people will be particularly badly hit as single people under the age of 25 are only entitled to the shared room rate which, even when calculated at the median, has been found to be too low to find a decent quality tenancy in many areas. As Annex B shows, the shared room rate is less than half that of the one-bed rate (to which over 25 would be entitled) in most London BRMAs.
25.
Research supported by a coalition of charities including Centrepoint showed that 87% of claimants of the Single Room Rent (the rate available to under 25s before the introduction of the LHA) faced a shortfall between what they were receiving in housing benefit (HB) and what they were paying in rent, averaging £35.14 per week1.
26.
Unfortunately, the same information is not available for the shared room rate as LHA shortfall data has only been released for claimants of all ages. Evidence suggests, however, that the proportion of under 25s facing shortfalls remains high under the LHA. DWP’s own evaluation of the LHA pathfinders stated that, while the LHA was generally felt to be fairer for most claimants than the previous HB system:
"A notable exception to this is the treatment of claimants under 25 yrs, which is widely argued to be no fairer – or just as inequitable – as under previous HB regulations and to still be causing this group many difficulties… The LHA rates themselves in most areas are felt to be fair and, as a generalisation, there are relatively few complaints about the level at which these rates have been set. However, the rates set for shared rooms are an exception".
27.
If the rates are calculated at the 30% percentile, young people on the shared room rate will face even greater shortfalls. Given that they receive 20% (£13.60) less JSA per week than those over 25, unemployed young people will find it particularly difficult to meet any increase in shortfall.
28.
The Valuation Office Agency has calculated what the June 2010 LHA rates would have been if they were calculated at the 30th percentile rather than the median. These show that a young person renting a room in shared accommodation in Inner North London stands to lose £25 per week in LHA if the changes go ahead. This represents nearly half of their weekly £51.85 JSA payment.
29.
Meeting this shortfall will be impossible after other costs are taken into account. Even young people living on a very tight budget struggle to meet their costs under the existing system, and simply do not have the money to make up shortfalls of this magnitude:
Fig 1. An example weekly budget of a young person living in the private rented sector and claiming JSA or income support
|
£51.85
|
Total weekly income
|
|
- £25
|
Rent Shortfall
|
|
- £7
|
Gas
|
|
- £7.50
|
Electricity
|
|
- £4.50
|
Water
|
|
- £20
|
Food, toiletries and household supplies
|
|
- £7
|
Travel
|
|
- £3
|
Clothes
|
|
- £2.50
|
Mobile Phone
|
|
- £24.65
|
Net weekly income after costs
|
30.
The detrimental effects will not be limited to London. A young person renting a single bedroom in private, shared accommodation in Durham faces a potential shortfall of £16.65 per week, representing approximately a third (32%) of his or her weekly £51.85 JSA payment. Annex C shows the shortfalls which can be expected across the BRMAs in the North East where Centrepoint runs a Rent Deposit Guarantee Scheme resettling homeless young people into the private rented sector. Young people in these areas already find it difficult to find affordable properties due to the lack of shared accommodation in the area, and these cuts will only make matters worse.
31.
Many different types of household will also face hardship under the proposals, including single parent families. For example, a young parent with one child would be entitled to the two bedroom LHA rate which in Inner West London in June was £303.78 per week. If calculated at the 30th percentile, this would have been only £277.00 per week, potentially leaving a young parent with a shortfall of £26.48 a week. An unemployed single mother is likely to rely on only £65.45 per week income support and £20.301 per week in Child Benefit (CB), making her total weekly income £85.75. The rent shortfall would therefore reduce her income by a third (31%), and leave her with only £59.28 a week to meet all of her expenses including utilities, food for her and her child, nappies, clothes, and transport.
32.
Due to their inability to make up such large rent shortfalls, young people in varying circumstances from across the country are likely to fall into arrears and risk eviction and homelessness.
Limited access to properties
33.
If LHA rates are calculated at the 30th percentile, young people will also have a much more limited pool of properties from which to find accommodation as, effectively, they will be financially excluded from at least 70% of properties within a BRMA.
34.
People in receipt of HB already face difficulties accessing affordable tenancies, as many landlords refuse to rent to HB claimants1, particularly those who have a history of homelessness and arrears.
35.
Policy makers should therefore not assume that receiving LHA set at the 30th percentile will give claimants access to the bottom 30% of rents in a given area, as many landlords will deem HB claimants as too risky. Anecdotal evidence supplied by landlords suggests that many consider slightly higher rents as insurance against a higher possibility of arrears.
Recommendations
36.
Centrepoint urges the Government to rethink its proposals to recalculate all LHA rates at the 30th percentile rather than the median. LHA rates should continue to be calculated according to the median rent within each BRMA in order to give HB claimants a fairer chance of finding a decent and suitable property without risking a shortfall. This will make it easier for claimants to sustain their tenancy and escape homelessness in the long-term.
37.
If this is not possible, Centrepoint believes that the shared room rate should be exempt from the changes and continue to be calculated at the median, as a large proportion of those receiving this rate of HB already face a shortfall. If the shared room rate is not exempted, youth homelessness is likely to increase because young people are in a worse position to meet rent shortfalls due to the damaging effect of existing discrimination in benefits rates for those under 25.
From 2013-14, Local Housing Allowance rates will be uprated in line with the Consumer Price Index (CPI).
38.
Centrepoint is extremely concerned about the proposal to uprate LHA rates by CPI rather than local rent levels as it will mean that, over time, LHA payments will lag behind the market in which claimants must attempt to find accommodation. Raising the LHA rates by CPI will also mean that the rates will not respond to local circumstances as rents are likely to rise at different rates in different parts of the country depending on levels of supply and demand. This will therefore mean that some parts of the country are more detrimentally affected than others.
39.
Over time, this will limit the ability of claimants to find and sustain tenancies in the private rented sector. Given that homelessness and housing strategies (such as the London Housing Strategy) are dependent on increasing the numbers of homeless households moving into the private rented sector over time, this will lead to a pool of households who have no other option but cannot afford private tenancies. This will likely lead to an increase in homelessness and ultimately rough sleeping as homelessness services become saturated.
From April 2011, Local Housing Allowance Rates will be capped at £250 per week for a one bedroom property, £290 per week for a two bedroom property, £340 per week for a three bedroom property and £400 per week for four bedrooms or more.
40.
The majority of young people that Centrepoint supports will be unaffected by the caps as most are only entitled to the shared room rate. It may however affect young parents, particularly those who move into the private sector from inner London hostels.
41.
While Centrepoint acknowledges that the taxpayer cannot be expected to meet excessive costs for large accommodation, we are extremely concerned that the proposed caps will effectively push LHA claimants out of central London, which is likely to lead to greater social segregation. If community cohesion is to be sustained and built upon, it is crucial that mixed communities are developed and supported in inner London boroughs. Otherwise, the central areas of the capital will become the preserve of the wealthy few.
42.
We are particularly concerned that formerly homeless young people will be forced out of central London BRMAs and into the outer suburbs without first building up alternative infrastructure in the destination areas. This will leave many without access to the services they need, as the vast majority of intensive support services for the homeless are in central London. Many formerly homeless people will still have support needs, but outer London boroughs may not have the necessary services in place to meet them. For example, many specialist drugs and health services that understand the issues that formerly homeless people face are based in the centre of London. Young people still need support from these services after moving into independent living in order to maintain their tenancies, so it is crucial that they still have access to them. Some young people build up very positive relationships with their local services near central London hostels, and taking them away from these sources of support could be very damaging.
43.
Ensuring appropriate infrastructure in the wider sense is also crucial. If increasing numbers of people are forced to move to outer London BRMAs, they will need access to college places and doctors surgeries, as well as to sufficient numbers of affordable tenancies. It is therefore extremely misguided to implement these changes and force tenants out to the outer boroughs without first ensuring appropriate additional provision is in place in the destination areas.
Deductions for non-dependants will be uprated in April 2011 on the basis of prices. This will reverse the freeze in these rates since 2001-02.
44.
Centrepoint believes that any increases in non-dependent deductions must be carefully managed or there will a risk of adult children being forced to leave the family home because their parents cannot afford their rent. Non-dependent deductions are already a common cause of tension within families as non-dependents are often unable to make up the deductions themselves, particularly if they are unemployed. At a time of rising youth unemployment, there are likely to be increasing numbers of families affected, and it will be much more expensive to the taxpayer if more young people are forced out of home and make a benefit claim in their own right, or even become homeless.
45.
Reversing the freeze in rates since 2001-2 will mean that deductions are increasing faster than the rate of inflation at the same time as overall housing benefit rates are being cut. These additional losses at a time when households will already be struggling to pay their rent could lead to increasing number of households getting into arrears.
From April 2013, housing entitlements for working age people in the social sector will reflect family size.
46.
Centrepoint has concerns about proposals to break the link between the rent level of a social rented property and housing benefit payments because tenants in this sector have little power over the properties they are allocated. It is crucial that these are cuts are not implemented without addressing allocation and transfer procedures. Otherwise, tenants will be left with no suitable housing alternative and insufficient HB to pay their rent, meaning they are likely to build up arrears and risk eviction and homelessness.
47.
Even if allocation procedures are amended to help under-occupying households to move to smaller tenancies, given the lack of social housing it may be that smaller properties are not available as soon as a household’s circumstances change. It will therefore be important to build in safeguards to exempt tenants who are waiting for smaller tenancies to become available. Otherwise, both tenants and social landlords are likely to face considerable financial hardship.
The Government contribution to Discretionary Housing Payments will be increased by £10 million in 2011-12 and £40 million in each year from 2012-13.
48.
Centrepoint welcomes the increase of the Discretionary Housing Payments (DHP) budget to £40million a year, but believes that it will be insufficient to plug the widespread rent shortfalls created by the proposed cuts, which are expected to cost tenants £1.8 billion.
49.
In addition, the impact of the increased DHP funding will be dependent on how local authorities choose to use it. Centrepoint’s experience has shown that practice varies widely between different authorities with some giving out very few DHPs even when they still have funding available in the budget. If local authorities continue to refuse to pay out DHPs in this way, the increased budget will be of little use. Centrepoint strongly urges local authorities to allocate a fair proportion of the DHP increases to young people, as they are likely to be particularly badly affected by the cuts due to the existing discrimination in benefits rates for under 25s.
Conclusion
50.
Centrepoint believes these housing benefit cuts will lead to hardship among young people across the country, and are likely to lead to an increase in youth homelessness. While we acknowledge that the Government must find savings, we believe that these cuts to housing benefit will target the most vulnerable who are least able to meet them, particularly young people under 25 who are already entitled to lower rates of benefits. If the Government decides to go ahead with these cuts, Centrepoint strongly urges the inclusion of exemptions for certain groups to mitigate the effect on the most vulnerable.
6 September 2010
Annex A: Framework of vulnerability for direct payment applications
|
Grounds
|
Evidence
|
Long Term
|
|
Tenant has a learning disability that prevents them from managing on a daily basis
|
·
Care / support Workers
·
GP
|
·
Adult Social Care
·
DWP – (evidence of benefits)
|
|
Tenant suffers from a Medical Condition that makes it hard for them to cope with routine tasks
E.G. schizophrenia, dementia, terminal illness
|
·
Care / support Workers
·
GP
|
·
Adult Social Care
·
Hospital
|
|
Tenant has a physical disability that means that they are often housebound making it difficult for them to manage their affairs.
|
·
Care / support Workers
·
GP
|
·
Adult Social Care
·
Hospital
|
Temporary / Short Term
|
|
Tenant has experienced recent changes that has meant they need additional support in managing their affairs
E.G. bereavement; (violent) relationship breakdown; period in hospital; leaving prison, leaving care
|
·
Care / support workers
·
GP
·
Adult Social Care
|
·
Hospital
·
Probation officers
·
Family / Friends
|
|
Tenant speaks English only as a second language, presenting obstacles to them in opening and running bank accounts; reading and dealing with invoices and bills.
|
·
Written Evidence from Support Organisations that arrears / debts have occurred as a result of not understanding correspondence
|
|
Tenant is dealing with (or has a history of) addiction to drugs, alcohol, gambling and a substantial monetary payment to them would present a risk of relapsing.
|
·
Support Organisations
·
GP
·
Adult Social Care
|
·
Hospital
·
Care / support workers
·
Supporting People
|
|
|
·
Housing Advice
·
Advice / Welfare Agencies
|
·
Homelessness Teams
·
Big Issue
|
|
Financial
|
|
Tenant has severe debt problems
E.G. CCJs, Bad credit rating that prevents opening bank accounts; undischarged bankruptcy
|
·
Creditors
·
Court orders
|
·
Solicitors
·
CAB
·
DWP Job Centre Plus are paying other paying benefit direct to Utility company
|
Annex B: Shortfalls between 30th percentile and median LHA rates in London BRMAs
Based on Valuation Office Agency data for June 2010
|
Broad Rental Market Area (BRMA)
|
1 ROOM RATE (single young person)
|
1 BED RATE (care leaver)
|
2 BED RATE (young parent with one child)
|
|
Median rate
|
30th percentile rate
|
Shortfall under new system
|
Median rate
|
30th percentile rate
|
Shortfall under new system
|
Median rate
|
30th percentile rate
|
Shortfall under new system
|
|
Inner North London
|
£102.60
|
£77.10
|
£25.50
|
£245.00
|
£215.00
|
£30.00
|
£330.00
|
£290.00
|
£40.00
|
|
Outer North London
|
£87.50
|
£74.30
|
£13.20
|
£178.36
|
£170.00
|
£8.36
|
£230.00
|
£218.63
|
£11.37
|
|
Inner West London
|
£107.47
|
£94.36
|
£13.11
|
£240.00
|
£220.00
|
£20.00
|
£303.78
|
£277.00
|
£26.78
|
|
Inner South West London
|
£115.07
|
£102.60
|
£12.47
|
£231.00
|
£210.00
|
£21.00
|
£300.00
|
£276.16
|
£23.84
|
|
Inner East London
|
£102.50
|
£91.10
|
£11.40
|
£235.00
|
£210.00
|
£25.00
|
£300.00
|
£265.00
|
£35.00
|
|
Outer South East London
|
£79.40
|
£69.53
|
£9.87
|
£149.59
|
£143.84
|
£5.75
|
£184.11
|
£172.60
|
£11.51
|
|
Outer South West London
|
£92.05
|
£82.50
|
£9.55
|
£189.86
|
£178.36
|
£11.50
|
£253.15
|
£218.63
|
£34.52
|
|
Outer West London
|
£85.34
|
£77.50
|
£7.84
|
£166.85
|
£161.10
|
£5.75
|
£207.12
|
£195.62
|
£11.50
|
|
Outer North East London
|
£71.00
|
£63.18
|
£7.82
|
£149.59
|
£143.84
|
£5.75
|
£189.86
|
£178.36
|
£11.50
|
|
North West London
|
£87.53
|
£80.00
|
£7.53
|
£172.60
|
£166.85
|
£5.75
|
£218.63
|
£205.97
|
£12.66
|
|
Inner South East London
|
£89.75
|
£82.50
|
£7.25
|
£184.11
|
£172.60
|
£11.51
|
£240.00
|
£207.12
|
£32.88
|
|
Outer East London
|
£75.95
|
£69.04
|
£6.91
|
£165.00
|
£160.00
|
£5.00
|
£202.00
|
£195.00
|
£7.00
|
|
Outer South London
|
£80.55
|
£75.00
|
£5.55
|
£155.34
|
£149.59
|
£5.75
|
£195.62
|
£184.11
|
£11.51
|
|
Central London
|
£140.94
|
£137.50
|
£3.44
|
£350.00
|
£310.00
|
£40.00
|
£480.00
|
£414.63
|
£65.37
|
Annex C: Shortfalls between 30th percentile and median LHA rates in North East BRMAs
Based on Valuation Office Agency data for June 2010
|
Broad Rental Market Area (BRMA)
|
1 ROOM RATE (single young person)
|
1 BED RATE (care leaver)
|
2 BED RATE (young parent with one child)
|
|
Median rate
|
30th percentile rate
|
Shortfall under new system
|
Median rate
|
30th percentile rate
|
Shortfall under new system
|
Median rate
|
30th percentile rate
|
Shortfall under new system
|
|
Durham
|
£67.05
|
£53.35
|
£13.70
|
£80.55
|
£69.04
|
£11.51
|
£92.05
|
£86.32
|
£5.73
|
|
Teesside
|
£49.00
|
£43.50
|
£5.50
|
£92.05
|
£85.25
|
£6.80
|
£103.56
|
£94.82
|
£8.74
|
|
Northumberland
|
£63.50
|
£58.50
|
£5.00
|
£80.28
|
£74.79
|
£5.49
|
£92.05
|
£86.30
|
£5.75
|
|
Tyneside
|
£60.00
|
£55.00
|
£5.00
|
£92.05
|
£86.30
|
£5.75
|
£105.86
|
£97.81
|
£8.05
|
|
Sunderland
|
£45.00
|
£43.00
|
£2.00
|
£90.90
|
£86.30
|
£4.60
|
£109.32
|
£100.00
|
£9.32
|
|
Darlington
|
£55.00
|
£54.50
|
£0.50
|
£82.93
|
£80.00
|
£2.93
|
£97.81
|
£88.60
|
£9.21
|
|
