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Charedim in large properties fear benefit cap

December 2, 2010 13:19

ByLeon Symons, Leon Symons

1 min read

Charedi leaders are fearful of the impact of the government's proposal for a £400 a week cap on housing benefit for rented homes with four bedrooms or more.

A Hackney Council report on the proposal concludes: "Ethnicity analysis of local housing allowance [LHA] claimants who will be adversely affected by the cap proposal clearly shows that the Charedi community will be the most severely affected."

The report noted that, 18 months ago, LHA levels were typically £550 for a five-bedroom property. The LHA is the amount Hackney pays towards the rent of people claiming benefit. If the rent is more, the tenant is responsible for the balance.

"It's the talk of the whole area," said Michoel Posen of Agudas Israel Community Services in Stamford Hill. "Everyone is very worried." If the proposal was adopted, some families would move out of the area, most probably to Manchester, where rents are cheaper.