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Reduced benefit cap predicted to hit 120,000 families

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Homelessness across the country is at risk of getting worse as nearly 120,000 families are predicted to be impacted by the reduced benefit cap, according to research by the Chartered Institute of Housing.

From November 7 the total amount of benefits a household can receive will be reduced from £26,000 to £20,000 outside of London and £23,000 in London.

The CIH’s research showed almost 116,000 families across the social rented and private rented sectors are set to be affected, the vast majority of which are families with two or three children.

The benefit cap cut is likely to hit the most families in London and the south-east, according to the research.  

Terrie Alafat, chief executive of the CIH, said families will be faced with a “substantial gap” between the benefits they receive to help pay for their housing and their rent costs.

She said: “We are seriously concerned that this could have a severe impact on these families, make housing in large sections of the country unaffordable and risk worsening what is already a growing homelessness problem.

“This is a measure which seriously risks undermining the government’s commitment to make society fairer for families in Great Britain and we suggest that they look at this urgently.”

Regional breakdown of families affected:

 1 child2 children3 children4 childrenTotal

North East

39

450

3,470

1,334

5,293

North West

148

2,691

7,479

2,536

12,854

Yorkshire & Humberside

63

990

5,578

2,575

9,206

East Midlands

69

1,089

4,158

1,761

7,077

West Midlands

92

2,345

7,037

2,557

12,031

East of England

215

4,973

5,541

1,198

11,927

London

5,570

5,525

4,840

1,944

18,059

South East

581

8,846

7,100

1,148

17,676

South West

89

3,882

4,284

1,017

9,272

Wales

60

1,113

3,287

1,384

5,844

Scotland

164

1,659

3,478

1,432

6,733

Total

7,270

33,563

56,252

18,887

115,972

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