Leading housing advice charity, Housing Rights has expressed deep concern about the risk of homelessness to people renting their home from private landlords, following news that a vital fund to help low-income tenants cover the cost of their rent, is at risk of running out.
The fund provides “top up” payments to people renting from private landlords whose housing benefits do not cover the cost of their rent in full. The fund is administered by the Northern Ireland Housing Executive, which has announced that due to increased demand, cutbacks to some tenants in receipt of an award are necessary to prevent it from being used up.
Kate McCauley, Housing Rights Chief Executive, said:
“It is deeply concerning that only halfway through the year, the budget for this vital support is at risk of running out. The huge demand on this budget shows the difficulties that private renters are facing. As a housing advice organisation, we know that these payments are often the only thing that helps keep the roof over people’s heads when they are struggling to pay their rent.”
The news that the fund is at risk of running out is an additional blow for those renters struggling with their rent. According to the Office for National Statistics (ONS), rents in Northern Ireland have risen almost twice as fast as anywhere else in the UK, with a peak in March 23 of 10%.
Since 2019 the Cliff Edge Coalition, a group of over 100 organisations concerned about changes to social security have been calling for safety nets to low-income private renters to be strengthened. The Coalition has lobbied for support in addition to the Discretionary Housing Payment fund to support households renting from private landlords. In June 2022, the Welfare Mitigations Independent Advisory Panel also recommended that additional support be put in place.
Housing Rights is calling for urgent action to be taken to ensure the fund is able to continue to help private tenants struggling with their housing costs.
Ms McCauley continued:
“Urgent action must be taken to ensure this fund continues to support households at risk of homelessness.
In the absence of a functioning government in Northern Ireland, we call on the Secretary of State to immediately prioritise finding a solution. Failure to do so will have serious consequences for households who lose out on this vital support, which regrettably is likely to mean more people losing their homes.”
ENDS
NOTES TO EDITORS
Spokespersons available upon request
Discretionary Housing Payment (DHP) is support which can provide extra financial assistance with housing costs for tenants who have a shortfall between their housing benefit or Universal Credit housing cost award and their rent. The award is made following an application to the Northern Ireland Housing Executive which has discretion to make awards for different amounts over different periods of time.
The total DHP budget for the 2023/4 year is £6.49 million.
Since 2020, average rent prices in Northern Ireland have risen from £648 to £791. Local Housing Allowance, the rate at which housing benefit / Universal Credit is paid at to people renting privately, has been frozen since 2020.
The Welfare Mitigations Independent Panel recommended the establishment of a Financial Inclusion Service to provide advice and assistance for low-income families who have been impacted by shortfalls in Local Housing Allowance. This would provide access to a grant to help meet the shortfall
Housing Rights is the leading specialist provider of advice, information, and training on housing and homelessness issues. The charity was established in 1964 and works to improve lives by tackling homelessness and housing problems.
Housing Rights advisers can offer free and confidential advice on dealing with rent arrears or mortgage arrears and free services for homeowners facing possible repossession including court representation. The charity also offers advice on benefits entitlements, accessing grants for rent deposits, as well as a free housing mediation service that can help resolve disputes in privately rented properties.
For enquiries contact Noeleen Lynn, Digital Communications and Marketing Officer, [email protected] / [email protected], telephone 02890 245640 / 07512 203867.
