Chichester District named as one of the areas where housing benefit does not cover cost of a room

New analysis from the leading youth homelessness charity Centrepoint has found that the Local Housing Allowance (LHA) covers the full cost of privately renting for young Universal Credit claimants in only one in eight (12 per cent) local authorities across England with the Chichester district being among them.

The charity looked at how the lowest form of the LHA rate – the Shared Accommodation Rate, set by the Valuation Office Agency and paid by the Department for Work and Pensions – compares to the cheapest 25 per cent of rooms (in a shared house) in the private rented sector across England.

The Chichester district ranks 158th in terms of local authorities which of the lower rents are covered by the Local Housing Allowance.

The lower quartile rental price in Chichester is £370 with the Local Housing Allowance being 342.45.

This means that 93 per cent of the lower quartile rent is being covered by the allowance with the difference between the two £27.55.

The average difference between the LHA rate and rent for young people across England, where the LHA rate is less than the cheapest rental costs, is nearly £70 per month.

In one local authority area, a young person could be forced to make up over £400 to cover the rent.

Balbir Chatrik, Centrepoint’s director of policy said “The Local Housing Allowance is meant to make sure that the cheapest accommodation is accessible to those who need it.

“However, it has failed to keep pace with inflation and astronomical rents, making it even harder for young people to find affordable accommodation.

“This has trapped young people – who already lost more in the last Universal Credit cut than older claimants – in a permanent cost-of-living crisis.

“If it made sense to ensure the Local Housing Allowance keeps pace with the lowest third of rents two years ago – it surely does now with all the additional challenges those who need this support are facing.

“We cannot expect them to make up shortfalls in Local Housing Allowance themselves. Local Housing Allowance rates must be urgently reviewed to ensure those already choosing between food and bills are not also facing homelessness too.”

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