In recent weeks the UK Government has taken several crucial steps to ensure our social security net can catch as many people as possible, as the impact of coronavirus wreaks havoc on the finances of households across the UK.
To date we’ve seen the monthly standard allowance for universal credit (UC) raised, and the temporary suspension of face-to-face appointments.
While this fails to address UC’s most problematic feature – the five-week wait before claimants receive their first payment – the changes made are welcome.
However, more needs to be done in the months ahead to ensure the safety net is wide enough to catch all who need it.
The Chartered Institute of Housing, along with organisations including Shelter UK and the Joseph Rowntree Foundation, has issued a joint letter to chancellor Rishi Sunak explaining the need to temporarily lift the local housing allowance (LHA) rates to the 50th percentile rent.
In simple terms, this means housing benefit for people renting privately would be lifted to cover the average cost of renting in each of Northern Ireland’s eight housing market areas, increasing it from the current level that covers just the cheapest 30 per cent of properties.
Prior to the crisis LHA rates had been frozen or inadequately increased for a number of years. Housing Rights reported that by 2018 only around 12 per cent of properties advertised were available at or below the LHA rate. The UK Government has now reset LHA rates to the 30th percentile rent as part of its covid-19 response, but it must go further.
With millions of newly unemployed turning to UC across the UK, we are going to be faced with tenants whose rent substantially exceeds their LHA rate, plunging them into rent shortfalls. They will start the post covid-19 period climbing out of arrears. This is problematic given that around 38 per cent of private tenants in Northern Ireland are already living in poverty.
With considerably fewer protections than those who rent from a social landlord, the step to uplift LHA rates must be taken to prevent poverty levels from skyrocketing and to protect the long-term viability of private renting, its tenants and landlords.
Among those who won’t get their rent fully covered are those households impacted by the benefit cap. We are particularly concerned about the effect of the cap on women escaping domestic violence. Newly separated parents can be subject to the cap with immediate effect.
The central message in fighting against covid-19 is to ‘stay at home’ and moving home for a more affordable rent is next to impossible. It has never been more important to protect tenants and put in place measures that enable households to meet their rental costs and feel secure in their own home.
Heather Wilson
Policy and engagement manager
Chartered Institute of Housing Northern Ireland