Local Housing Allowance 'failing'

14/12/2009

The current system for Local Housing Allowance is leaving tenants in danger of losing their homes, Shelter has said.

The system was created to give claimants financial independence by paying rent money into their bank accounts, rather than those of their landlord.

However, the housing charity found that the system it is in serious need of review – with 95 per cent of the claimants surveyed reporting problems with managing their finances.

59 per cent, meanwhile, said that they had to make up shortfalls in rent – with many doing so at the expense of food or sufficient heating.

The research also found that 60 per cent had difficulty finding landlords who would accept LHA claimants.

Remember, if you are worried about managing your outgoings, you can use our debt calculator test or take a look at our expert advice, which is all available on our website.

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