LHA cuts to split London

13 January 2011

Houses of Parliament

Government cuts to Local Housing Allowance (LHA) will increase the segregation of rich and poor areas in London, our research confirms.

The latest report commissioned by Shelter and carried out independently by the University of Cambridge shows that the neighbourhoods remaining affordable for LHA claimants by 2016 will be in clusters of four distinct, separate blocks outside inner London.

You can see the projected changes on our map of London.

These areas already have high rates of multiple deprivation and unemployment - so the reforms are likely to increase the segregation of poor and better-off households within London.

The research was featured on BBC London News on Wed 12 January and builds on our campaign revealing the the impact of housing benefit cuts across the UK.

While much of the media attention on these cuts has focused on the caps to Local Housing Allowance rates, the study finds that the change to using the bottom 30% of rents to set rates is likely to have the greater impact on the number of neighbourhoods that remain affordable.

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