What ever you want to call it this policy has totally destroyed my village and those around us. The UK is not a one size fits all place.
In my area the only one beds are very few, right in the (small) city centre and cost way more than LHA will even consider for a family home as they're 'luxury' lets. Two beds are also pretty thin on the ground. The vast majority are three rooms plus as that is what the council built.
Up here there are no smaller homes, there are no jobs and rent arrears are soaring. Private owners have moved for work, to share with family or to cheap council homes and are letting out 3 beds at the 2 bed LHA rate to get tenants. But these rates are still £100 PCM higher than the council rents. The council homes are empty and more money is being paid out in housing benefit, no homes have been freed up and no one is benefitting.
But, the tenant loses security of tenure, many can't afford to move in the first place. Landlords are stopping paying their mortgages when they realise it'll take years to clear negative equity and the first the tenant hears is the eviction notice, get evicted, get housed, end up paying the underoccupier tax as the council has no smaller homes to offer! Other LL's just don't bother with upkeep and homes are increasingly dilapidated with poor, expensive heating such as coal and inadequate insulation.
Lets not forget that it is an increasing disincentive to work as you now need to earn more to be in the same level.
I'm sure plenty will come on and squeal as to how they can just get a job. Come to the agencies and industries that hand out shit work on a daily basis and see how early they line up daily to only be turned away again. When 10% are unemployed just getting a job isn't easy. You can't spout that Eastern Europeans come and find jobs either, there are very few EE as there are NO JOBS.
It is heartbreaking here and I look at the children and young adults and wonder what chance they have.
The worst part is that the prosperous South would be a fucking third world country without the North. We have the coal, we grafted, we gave the world the industrial revolution. All the wealth and power was built in the North, yet we've been shafted and many in the South feel we should be grateful for the crumbs they offer after they trashed the economy. Thanks a bunch.