They should get rid of the housing benefit cap!

[Diggydiggydumbdum]

I’ve been thinking a lot about the housing benefit cap (Local Housing Allowance cap), and the more I read, the more it feels like a scam. It was meant to save money by capping how much rent housing benefit would cover, but instead, councils are spending eye-watering amounts on temporary accommodation, and families are left stuck in the middle.

Before the cap, housing benefit covered private rents—even the inflated ones landlords charged. It wasn’t perfect, but at least people had more options: rent privately or wait for council housing. Now, with the cap, so many families can’t afford private rents and are being evicted, which means councils have to step in with temporary accommodation.

And here’s the kicker: councils spent £1.7 billion on temporary accommodation in 2023, almost double what they spent a decade ago. Individual households in temporary accommodation can cost councils £10,000–£20,000 a year, if not more. The money they’re “saving” on housing benefit? It’s being swallowed up by this anyway.

Plus, the conditions in temporary accommodation are often terrible—unsafe, overcrowded, and miles from people’s support networks. Kids are growing up in limbo, and families have no choice over where they live. Meanwhile, private agencies and middlemen are making a fortune out of the system.

Wouldn’t it make more sense to tackle the root of the problem? One option could be adjusting housing benefit to reflect real rents, so more people could afford private housing again. Another idea is rent caps, like they have in places like New York. If rent control works in one of the most expensive cities in the world, why can’t we try it here?

People always say, “Just move to a cheaper area,” but that ignores the fact that more expensive areas still need workers. Who’s going to do the jobs that keep those places running—childminders, cleaners, hairdressers, carers—if everyone has to move out?

It just feels like the current system isn’t working for anyone (except maybe the landlords and agencies profiting from temporary housing). Why aren’t we talking about this more?

Perhaps if poverty wages weren't being propped up by the state, then wages in expensive areas would have to rise

We need rent control as a country

No, I am old enough to remember when we had it before. There were hardly any private flats to rent.

This. You even agreed.
Many of these families rely on housing benefit to top up their wages because even full-time jobs on minimum wage don’t pay enough to cover skyrocketing rents.

Id go for the UBI route and stop everything else, make it pay to work.

I get £850 housing benefit entitlement for a 3 bed,which is an amazing help but cheapest 3 bed in my area is 1300+, my total UC entitlement is £1650, I can't afford to rent privately and council won't help so I'm in a 2 bed with 3 kids,the housing benefit doesn't reflect gow much private properties actually cost

£1650 just in benefits though. Do you children get fsm on top? And when you add your wages to that, the actual amount could be equivalent to a well above average salary

Im not currently working as my childcare fell through just at the end of my maternity leave so that is my total monthly income,yes my son gets fsm but that won't cover the extra £500 or so I'd need to find to rent a 3 bed,when I return to work ill have to pay childcare as well as the rent deficit, it's just not feasible on one salary, my full time wage as a ta was 1200,obvs got less uc when working

I'm on just under the average wage and I absolutely think that the 4 of them should have more to live on than the 1 of me! They don't even see half that money, it goes straight into the pocket of a private landlord.

We need more social housing, higher benefits and higher wages. We should not be subsiding privately owned companies and landlords.

We should not be subsiding privately owned companies and landlords

Well said - a rounded argument for all workers!!