Benefits leave South Tyneside renters £104 a month short

Figures from youth homelessness charity Centrepoint show people renting from private landlords who are eligible for housing benefits in South Tyneside will receive £286 per month from the local housing allowance this year.

The median rent for a room in a shared house in South Tyneside is £395, while the cheapest 25% of rents cost up to £390.

Housing allowance would cover just 73% of that price – leaving people needing to find an extra £104 per month.

Local Housing Allowance is a housing benefit payment made to those eligible for Universal Credit and is meant to cover the cheapest 30% of rooms in a shared house on the private rental market but Centrepoint say one in 13 local authorities in England provide sufficient housing benefit for people living in their area.

The charity says that, without the Government raising housing benefit rates, people face homelessness amid soaring rental prices.

Nationally, say Centrepoint, the average shortfall is more than £90 a month.

Alicia Walker, head of policy, research and campaigns at the charity, said: "Many vulnerable young peopl rely on Universal Credit to keep a roof over their heads.

"If you’re on a low or fixed income, no amount of clever budgeting is going to help you find an additional £100 or more to cover the rent.

“Without the Government increasing rates immediately, many of them could face losing their home."

The latest Office for National Statistics figures show prices for all rental properties in the North East have increased by 4.1% in the year to January, while average rents across England have risen by 4.3%.

A Department for Work and Pensions spokesperson said: "During the pandemic, we increased Local Housing Allowance significantly and beyond inflation, benefiting over a million households by an average of over £600 over the year.

"We’re maintaining that boost, keeping support for private renters above pre-pandemic levels.”

They added: "The benefit cap provides a strong work incentive and ensures fairness for hard-working taxpaying households by encouraging people to move into work where possible.”