The London borough of Newham is lobbying the Government to be allowed to house families outside the area.
The local authority is one of several London boroughs placing homeless families away from the capital, including households unable to afford private rents because of new benefit caps.
The Government is now seeking to restrict local authorities’ ability to place families away from their local areas.
Newham says there are simply not enough properties in its borough that fall within the capped Local Housing Allowance (LHA) rates, and says there are not enough private landlords who will accept benefit claimants.
The council has expressed its opinions in written evidence to the House of Commons Work and Pensions Committee which is examining the progress being made towards the implementation of the Universal Credit.
Newham says it currently has around 250 households living in temporary accommodation who will be subject to the total benefit cap proposed under the Universal Credit, and who will collectively lose £1.16m a year in income.
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