A Paisley Councillor has hit out at plans to cap housing benefit for social housing tenants aged under 35.
SNP Cllr Kenny MacLaren has said an interim report on the impact of UK Government plans to cap housing benefit for social housing tenants aged under 35 has concluded that 21,000 young Scots could face a rent affordability gap of up to £22.6 million annually as a result.
A final report exploring the potential to mitigate against the impact of LHA restrictions is due to be completed this summer.
Cllr MacLaren explained that since October 2015, the UK government has made various proposals and amendments to cap Housing Benefit or the housing element of Universal Credit for social housing tenants at LHA rates, including for those living in supported or temporary accommodation. The proposals are intended to bring payments for social housing tenants in line with those living in the private rented sector.
As the proposals currently stand, single people under 35 years of age will see their allowance capped at the Shared Accommodation Rate (SAR).
Cllr Kenny MacLaren, Paisley North West said: “21,000 young Scots face losing £22 million in rent thanks to planned Tory cuts.
“This is another example of the Tory austerity agenda, cutting housing support to those most in need.
“This change will impact not just on younger tenants but also on their social landlords including local councils and housing associations who will have to deal with this major impact on their finances.”
Comparing DWP claimant data on average awards received by young Housing Benefit claimants with the Shared Accommodation Rate produces an annual estimated rent gap across Scotland of £22.6m. This takes into account mainstream tenants and those living in temporary or supported accommodation.
While some tenants living in specialist accommodation may be protected from the cap, it is not yet clear what exemptions will be made or how much funding will be available to plug this gap. Housing Association rents are typically higher than local authorities and so will be affected more by the proposed LHA cap.