This is nothing more than punishing the poorest for the failure of repeated governments to deal with the price of housing. Money that is reaped primarily by the rich. Remember that money paid in housing benefit goes to the owner of the property not the person living in it.
The ConDem's presentation is misleading to the point of dishonesty. As usual they're simply ignoring the fact that people in work continue to see multiple benefits paid to them. Since this cap almost exclusively effects people with several children, and mostly single mothers with several children, they'd still get child benefit if they were working and likely working tax credit and child tax credit on top of the "average" wage. I put "average" in quotes because the cap will, almost exclusively, hit people living in areas where the average wage is higher because, again, it's going on housing not on living costs.
The only alternative available to those hit is to move. There will be no money nor help to move; no provision for dealing with the fractured support network resulting from leaving their communities; no assistant for children shifted to new schools in new areas where they have no friends; no extra cash for the increased costs of visiting friends and families and so on.
It's cruel; it's pointless since it will save precious little money and it's based on bad politics.
+1
I'd say the main problem like others have said is the way HB is dealt with. Before the council would send out someone to value the property and decide on what rent should be allowed, now there is just a limit on what you can claim. depending on area and number of rooms.
This worked well for my brothers landlord who has around 60 houses as he only takes benefit claiming tenants (My brother has a physical disability) and he also only has 3 or 4 beds.
Before the changes he would only get around £450-500 for the 3 beds and £550-600 for the 4 beds but since LHA came in he now charges the maximum rent the council will pay which is currently £549.99 for a 3 bed and £725.01 for the 4 beds. He's making a substantial amount of money now and it shows when he's out and about in his new porsche cayenne or 911.
Now I have no idea about rents in london but LHA rates there are laughable, nobody on benefit should be getting that type of rent paid for them.
The government just dishes cash out then complains they have none, The landlords rake it in and the poor just....well....get poorer.
BRMA: Inner West London
Date: April-2013
LHA Type Weekly Monthly
Shared Room £102.20 £442.87
1 Bedroom £224.84 £974.31
2 Bedrooms £295.00 £1,278.33
3 Bedrooms £347.48 £1,505.75
4 Bedrooms £408.80 £1,771.47
Edit: My brother now runs his own business and his wife is a TA and doing training to become a real teacher yet they are struggling even more than they did before as they get no benefits at all now.