Tenants on housing benefits could need to find up to an extra £2,000 a year

Housing benefits tenants across our region are being forced to find up to £162 more every month – or £1,944 a year.

Local Housing Allowance (LHA) is a housing benefit payment made to those eligible for Universal Credit and is meant to cover the cheapest 30 per cent of rooms in a shared house on the private rental market.

Figures from youth homelessness charity Centrepoint show just one in 13 local authorities in England provide sufficient housing benefit for people living in the area.

The charity said without the Government raising housing benefit rates, people face homelessness amid soaring rental prices.

The figures show people renting from private landlords who are eligible for housing benefits in Gosport will receive £338 per month from the local housing allowance this year.

The median rent for a room in a shared house in Gosport is £537, while the cheapest 25 per cent of rents cost up to £500. Housing allowance would cover just 68 per cent of that price, leaving people needing to find an extra £162 per month to put a roof over their heads.

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In Fareham the comparable figures translate to an extra £115 a month, and £57 extra. in Portsmouth.

Centrepoint said people on low incomes renting homes are competing with one another, paying soaring costs and offering lump sums to secure properties.

Alicia Walker, head of policy, research and campaigns at Centrepoint, said: ‘This is particularly worrying for those vulnerable young people who rely on Universal Credit to keep a roof over their heads.

‘The fact is that if you’re on a low or fixed income then no amount of clever budgeting is going to help you find an additional £100 or more to cover the rent.’

A Department for Work and Pensions spokesperson said: ‘During the pandemic, we increased Local Housing Allowance significantly and beyond inflation, benefiting over 1m households by an average of over £600 over the year.

‘We’re maintaining that boost, keeping support for private renters above pre-pandemic levels. The benefit cap provides a strong work incentive and ensures fairness for hard-working taxpaying households by encouraging people to move into work where possible.’