(6 years, 10 months ago)
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The hon. Gentleman makes a good point.
One Housing, a major provider of affordable housing in London and the south-east, is extremely concerned about the plan for a cap on the housing benefit to the level of the local housing allowance. It believes that it will have a dramatic impact on older people’s housing with care schemes and could reduce new supply. The Home Group, which is active in the north-east, Cornwall and East Anglia, including in Lowestoft in my constituency, is concerned that reliance on LHA rates could lead to a postcode lottery. It has put on hold the development of 1,842 units across the country while it awaits clarification on the proposed system.
In my own constituency, one housing provider—Riverside—has informed me that all but one of its residents will be affected by these proposals, with the average resident’s rent at one project more than £100 per week above the proposed cap. Does the hon. Gentleman agree that the proposed arbitrary cap will cause undue stress and anxiety to residents who may be forced to rely on the top-up funds?
I thank the hon. Member for that intervention. It is quite clear from the feedback from organisations around the country such as Riverside—I have met Riverside staff—that there are serious problems.