Housing allowance cuts will increase segregation in London

By agency reporter
January 14, 2011

The housing and homelessness chariity Shelter, says its latest research confirms that Government cuts to Local Housing Allowance (LHA) will increase the segregation of rich and poor areas in London.

The latest report, commissioned by Shelter and carried out independently by the University of Cambridge, shows that by 2016, the neighbourhoods remaining affordable for LHA claimants will be in clusters of four distinct, separate blocks outside inner 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 12 January and builds on Shelter's 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 on Local Housing Allowance rates, the study finds that the change to using the bottom 30 per cent of rents to set rates is likely to have a greater impact on the number of neighbourhoods which remain affordable.


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