New research shows councils in London fear housing crisis fuelled by welfare reform

10th June 2014

Cuts to benefits have left families in London struggling and unsure how they will afford to stay living in their area, according to a new Child Poverty Action Group (CPAG) report.

The report highlights that councils, advice services and parents share the same fear: a housing crisis uprooting families from their homes and communities, with children’s education facing huge disruption by these forced moves.

Welfare reform has hit London harder than any other part of the country. High housing costs means that households in London on average have lost 22 per cent more than the rest of the country, losing almost £7 more per week than households outside of London. Almost half of all households hit by the benefit cap are from London.

CPAG is concerned about the impact that these cuts will have on child poverty in London, which has the highest rates of child poverty in the country. The high cost of living in the capital means that the experience of the capital’s children of growing up in poverty is one of particular hardship.

Issues highlighted in the report include that councils are struggling to find local housing for local families already and believe it is only going to get harder, and that high childcare costs in London make it harder for work to pay.