The Child Poverty Action Group has lost a legal challenge in the High Court against the Government over changes to housing benefit for tenants in the private rented sector.
The charity challenged two changes which were introduced in April. One was the new cap on Local Housing Allowance rates and the other was imposing a maximum size of four bedrooms that LHA will cover.
The new maximum LHA that will be paid is £400 for a four-bed home, with caps set for properties of other sizes.
The charity argued that the cuts were contrary to the fundamental purpose of housing benefit, to prevent homelessness. It also argued that the cuts failed to have due regard to equality legislation because ethnic minorities and lone parents will be disproportionately hit.
It claimed that around 9,000 London households in private rented accommodation will have to leave their homes as a result of the caps, and that just over half, about 4,600, will have to leave London.
The Child Poverty Action Group argued that this could mean upwards of 20,000 children having to move, including 14,000 out of their local area, with ensuing disruption to education, health and social services.
Mr Justice Supperstone dismissed the charity’s claims. He said the purpose of housing benefit is not to prevent homelessness but to help claimants with their rent whilst also protecting the public purse.
He also held that there was nothing to prevent the Government from setting an overall cap. Finally, he said that the Government had shown due regard to equality issues by preparing an Equality Impact Assessment.
Alison Garnham, the charity’s chief executive, said: “We are greatly disappointed. Minority ethnic and lone parent families are already at higher risks of child poverty, and the cuts to housing benefit that we challenged will make this situation even worse, driving people out of their homes and disrupting children’s education.
“We will now be studying the decision before deciding on our next steps. We will continue opposing the cuts and campaigning for fairness and justice for the families who are bearing the brunt of a financial crisis that they were not responsible for.”
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