Universal Credit families at risk of losing their homes due to soaring rents and have to pay hundreds to top up housing benefit
A study from Crisis said the welfare safety net was no longer covering the sky-high rents in Britain today
FAMILIES on Universal Credit are at risk of losing their homes as rents soar far beyond what housing benefits can pay for, a fresh report has revealed.
A damning study from homeless charity Crisis said the welfare safety net was no longer covering the sky-high rents in Britain today - thanks to cuts to local budgets.
"Universal Credit can be a tool to prevent homelessness, but only with the right investment.
"We need to see Government bring Universal Credit back in step with the true cost of renting."
In 2011 the Local Housing Allowance budgets were cut, and in 2016 it was frozen until 2020.
Amber Rudd has already vowed to try and increase the local housing allowance rates in the upcoming spending review, The Sun revealed last month.
David, 25, from Croydon, revealed how he has to fork out an extra £40 a month to cover the rent that isn't paid by the Local Housing Allowance rates.
"I make it work, but it's right. You have to shop smart, like with food, I freeze a lot of things," he said. "But the electricity is a killer."
Crisis called for more social housing to increase the supply of affordable homes and invest more cash into Local Housing Allowance rates.
The report said: "With adequate investment and the right policies in place, Universal Credit can be one of the best homelessness prevention tools at the Government's disposal in order to end homelessness and rough sleeping for good."
A Government spokesperson said: "Each year we spend around £23billion to help people with their housing costs. We have targeted extra funding at low-income households in areas where rents are placing most pressure on budgets, and given local authorities £1billion since 2010 to further support vulnerable claimants.
"With Universal Credit, housing costs can be paid directly to landlords to help people manage their money and many people take up this support.
"We continue to tackle the root causes of homelessness, committing £1.2billion of funding so far, as well as building more than 400,000 affordable homes since 2010."
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