Research carried out by the Carried out by the Centre for Economic and Social Inclusion (CESI) for the Local Government Association (LGA) shows that less than a quarter of those on benefits will be able to make up the shortfall by finding work or moving to cheaper accommodation
The study shows that by 2015/16 the income of households claiming benefit will be lower on average by £1,615 per year (£31 per week). The shortage of jobs and affordable homes in many areas means that four out of five households are likely to need some form of assistance from their council, such as Discretionary Housing Payments, to help them cope with the reduction in welfare.
The report recommends that the Government:
Help councils deliver new homes by relaxing the rules which severely limit how much councils can borrow against their existing housing stock.
Give councils and their partners in business more influence over employment schemes so that training providers produce more people with skills that are closely matched to what employers in the area need.
Immediately re-evaluate the Discretionary Housing Payments (DHP) fund to ensure supply better matches demand in local areas.
You can download the report at http://www.local.gov.uk/web/guest/media-releases/-/journal_content/56/10171/4097215/NEWS-TEMPLATE
For more on welfare reform go to http://disabilityrightsuk.org/how-we-can-help/benefits-information/factsheets/welfare-reform-factsheets