Housing benefit caps 'could hit BMEs hard'

The coalition's controversial housing benefit reforms could have a disproportionate impact on ethnic minorities, and disrupt community cohesion in parts of London, evidence from the capital's boroughs warns. Internal London borough briefing documents published under the Freedom of Information Act, and obtained by The MJ, reveal heightened fears about the impact of strict Local Housing Allowance and Housing Benefit caps on black and minority ethnic (BME) populations, as well as wider public services. The boroughs' analyses could reignite the fierce debate about the reforms, following accusations from Labour MP, John Cruddas, that ministers had initiated ‘brutal social engineering' by driving low income families from the centre of the capital, where rents were highest. Coalition welfare and housing ministers will cap housing-related benefit payments across the UK at £400 a week for large properties from next April, while many larger properties in London require weekly rents well above £600. Ministers also plan to link benefit payments to the value of the lowest-third of local rental properties from October 2011; increase social rents up to 80% of market value; and slash, by 10%, housing benefits paid to unemployed people after one year. Lobby group, London Councils, claimed the changes would affect 82,000 families in the capital. Coalition ministers put the figure at just 17,000 people. Other cities with high rents, such as Brighton, Oxford and Manchester, could also suffer. Documents obtained from Brent LBC reveal the benefit cap could hit ethnic minority groups hard because many benefit-dependent BME families are larger than the UK average. ‘There is an equalities dimension to this, as the Department for Work and Pensions' own analysis indicates that BME groups are disproportionately over-represented in the four-plus bedroom group,' Brent's analysis states. Hackney LBC warns that 94% of people affected by the benefits cap in one local ward come from the Charedi Jewish community. Claire Kober, leader of neighbouring Haringey LBC, said her borough was dealing with a ‘spill over' of the Charedi Jewish community. She also warned local Somali families could suffer ‘because they tend to be larger'. Newham LBC reports an inward migration of low income families could undermine community cohesion.Newham's documents state the reforms are ‘likely to have negative consequences within our housing market, and contribute to the fragmentation of our neighbourhood communities and undermine cohesion'. Housing minister, Grant Shapps, said: ‘The caps are not Draconian or unfair. The average taxpayer does not want to see £21bn – more than the whole police budget – spent on housing benefit.'

Title

WHITEHALL

Housing benefit caps 'could hit BMEs hard'

SUBSCRIBE TO CONTINUE READING