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Government Housing Benefit reform “simply creating more problems” says Citizens Advice

12 November 2013

The Chief Executive of Citizens Advice today warns that many households are being “caught in a catch-22“ by changes to Housing Benefit, ahead of an Opposition Day Debate in the House of Commons on the under-occupancy penalty.

Chief Executive of national charity Citizens Advice, Gillian Guy, said:

“The Government’s solution to spiraling Housing Benefit costs is simply creating more problems.  Thousands are being pushed into arrears, 96 per cent of people affected have no alternative smaller homes to move into and some housing associations say they are being forced to demolish homes whilst 1.8 million languish on waiting lists.

“The number of issues of rent arrears that Citizens Advice Bureaux deal with is rising fast. The sky-high cost of housing is a huge strain on our clients’ budgets and is pushing many into the arms of payday lenders.  

“Ministers are right to seek value for money, but the rushed nature of these changes and the lack of alternative housing means many will be caught in a catch-22 and unable to avoid the extra cost.  

“The fundamental problem with the high cost of Housing Benefit is the lack of houses, not the families who live in them.  This upside-down approach to policy does nothing to tackle the chronic housing shortage we face in the UK.  

“For many disabled people and their families, having a second bedroom is not a luxury but an indispensible necessity.  The under-occupancy penalty risks forcing a small number of families to bear the burden of years of under-investment in our housing stock.”

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.