Newham's plans to 'export' 500 families on waiting list to Stoke housing association blocked

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

A housing association in Stoke-on-Trent is set to block a London borough's request to take on 500 families in "immediate need" of a roof over their head and fears such a move could lead to the rise of "divisive right-wing extremism".

Labour-run Newham council says the Government's decision to cap Local Housing Allowance (LHA) rates is "exacerbating the problem" and making it harder for low-income families to get a roof over their head.

Changes to the LHA, 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.

The announcement of the £400-a-week cap 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.

The news also coincides with a survey from the National Landlords Association (NLA) last week which found that the majority of private landlords say they can’t afford to rent to housing benefit claimants because of the caps to the LHA.

It's understood Newham has written to the Brighter Futures Housing Association in Stoke, offering it the "opportunity" to lease homes to it, where, according to the BBC, it would pay it 90% of the LHA plus £60 per week.

Brighter Futures estimates the scheme could save Newham Council £5,250 a year for a family housed in a three-bedroom home.

However, according to the BBC, Brighter Futures is set to block the request.

Chief executive Gill Brown told the BBC: "I think there is a real issue of social cleansing going on.

"We are very anxious about this letter which we believe signals the start of a movement which could see thousands of needy people dumped in Stoke with no proper plan for their support or their welfare.

"We have seen in the past relocation putting strain on other services because the medical, education and justice systems are unprepared for an influx of very needy people.

"The result was huge, unplanned pressure on local services, the collapse of already vulnerable neighbourhoods and the rise of divisive right-wing extremism.

"We believe that, if London boroughs are allowed to export their most vulnerable and challenging families to cities like Stoke-on-Trent, then exactly the same will happen again."

A Newham Council spokesperson said: "We are committed to securing the very best accommodation for our people in tough economic times. However, the government's decision to cap housing benefit payments is exacerbating the problem and making it harder for low-income families to get a roof over their head. Homes on Assured Shorthold Tenancies are a much better option for people than bed and breakfast or other temporary accommodation.

"Newham - along with other London councils - is under significant pressure. We are doing everything we can to ensure we have good quality, affordable housing which is fairly distributed. This includes helping hard working families to get into social housing by prioritising residents who are working or have caring responsibilities. We are also consulting on a scheme to license all private landlords in a bid to stamp out rogue landlords and drive up standards in the private rented sector. This accounts for more than 35% of the borough's housing stock.

"Alongside a number of other London councils, we are also exploring the option of working with housing associations outside the borough to house people with an immediate need in the private sector, when there is no other alternative."

Last month, homeless families in the London borough of Croydon rejected the council’s offer to move them into temporary accommodation in the North of England.

Under increased pressure to find temporary accommodation for families in need, the council recently struck a deal with an unnamed northern developer to offer accommodation to dozens of homeless households.