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A joint report by the two housing organisations looks at the impact of changes to housing benefit announced in last month’s Welfare Reform Bill, including the move to up-rate Local Housing Allowance for private tenants using the Consumer Price Index of inflation rather than the cost of local rents. This will be the measure used to calculate the housing element of the new Universal Credit.
The move, which is planned for 2013, will break the link between the housing support people receive and the housing costs they pay. Over time, where rents rise faster than the CPI, this will mean housing benefit will cover less and less of the housing costs people face. Read More: