The impact of welfare reform changes in London
The studies found that:
For many households in London Universal Credit is unlikely to counter the effects of the Local Housing Allowance (LHA) changes, regardless of how much work is done.
London’s high rents mean that, even if households work more hours, they cannot possibly neutralise the impact of the LHA changes.
The national LHA cap can leave those working full-time below the poverty line.
Lower LHA rates do nothing to improve the incentive to enter paid work.
Social housing has the highest work incentive as well as the lowest cost to government.
The research found a growing sense of insecurity amongst the families studied. There was a strong fear of eviction or homelessness amongst a number of the families interviewed.
Many participants reported feeling stuck, unable to move because of the costs of moving and the lack of affordable alternative accommodation.
There was a low understanding and awareness of discretionary housing payments.
Those affected by a reduction in LHA felt there was little they could do until they were evicted by the landlord or taken to court for rent arrears.