The introduction of the LHA cap to the social rented sector: impact on young people in Scotland: research report
The UK Government has announced intentions to cap Housing Benefit or the housing element of Universal Credit at Local Housing Allowance (LHA) rates for social housing tenants from 2019. The proposals as they stand will have a significant impact on single tenants under the age of 35 who will only be entitled to the Shared Accommodation Rate (SAR) which is based on the cost of renting a room rather than self-contained accommodation. Given that there is no large scale provision of shared accommodation in the social rented sector, the majority of young single tenants are currently living in one or two bedroom homes and are likely to face a shortfall in their rent.
This research report, commissioned by CIH Scotland and the Scottish Government and carried out by Indigo House Group, estimates the number of young people who will be affected by local authority area and the likely financial shortfalls. It also explores mitigation options for consideration by local authorities, social landlords, and the Scottish Government.