New research by CIH estimates that 30,640 homes in Wales will be put out of reach of people on housing benefit as a result of changes brought in by the UK Government in 2012.
From this month, the government has capped housing benefit payments from £250 a week for one-bedroom homes to £400 for a four-bed. However in Wales the biggest impact arises from other changes which link local housing allowance, the benefit paid to tenants of private landlords, to the bottom third of rents in any area. The result is that in many places there will not be enough affordable homes to rent for those claiming. Wales is particularly badly affected with demand outstripping supply in 20 out of 22 council areas with some local authorities facing situations where three people are chasing every affordable private home for let.
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Vikki Hiscocks Policy and Public Affairs Manager at CIH Cymru said: "There is concern that many private tenants will be faced with the choice of losing their home, borrow more or cut back on what they spend on food for themselves and their families. It is also a common misconception that these reforms will only impact on people who are unemployed – there are an equal number of people affected who are currently in work."
(CD/GK)
