Massive drop in households claiming housing benefit over cap in Westminster

Published by Ross Macmillan for 24dash.com in Housing and also in Central Government, Communities, Local Government

More than 1,000 households in Westminster are no longer living in homes requiring housing benefit higher than the new national caps, it has emerged.

Changes to the Local Housing Allowance which came in for new tenants last year and for existing tenants from January has capped housing benefit at £400 for a four-bed home, £340 for a three-bed home, £290 for a two-bed home and £250 for a one bed home.

Westminster City Council's cabinet member for housing Jonathan Glanz said the borough had seen a reduction in the number of people claiming housing benefit above the cap from 5,200 when the cap came in to 4,100.

The announcement of the £400-a-week cap limit on housing benefit sparked outcry last year with some MPs warning of an exodous of poorer families from expensive areas of London and other cities.

While he didn't have specific details around the change in circumstances of the households, Mr Glanz said he believed a range of factors had played a part.

He said some may have been on the waiting list for social housing, some may have moved and taken work outside the borough, while some may have stayed in Westminster and negotiated lower rents.

Mr Glanz said: "They're no longer in homes in Westminster where they're asking for housing benefit at a level higher than the maximum levels under the new arrangements.

"We had anticipated people negotiating rents down to comply with the caps. We have seen some evidence of that."

He added that financial support is available to families with children at a crucial stage in their education.

He said: "We have specific funding to allow families with children doing exams to be tied over in that period, for example, if they're half way through their GCSEs. That will be something which we would be able to do to provide a short-term solution."