Every day increasing numbers of workers are having to resort to Housing Benefit, says a damning report from The National Housing Federation. They lay the blame on the rent rises in strong economic conurbation areas such as London forcing employed people into debt to maintain a home. The number of new claimants,every day, is estimated at 310.

Taxpayers are currently paying for an annual Housing Benefit bill of £12.1 billion for working people which includes an extra £1.7 million a day as more and more workers living in expanding population areas. This has been going on since 2009 and the fact that there has not been anywhere near enough new builds to cope with the pressures of population increase, has caused rents to rise to a level that many families simply cannot afford.

Within the report “Home Truths”, it states that whilst the economy is recovering across the country there is just not enough houses to cope with demand and areas of high unemployment and urban jungles are suffering the most.

It also forecasts that the picture will become worse as by 2020 young people will not stand a chance of achieving a mortgage with the rise in house prices.

It also says that rents are also going to rise by 2023 at an average of 39% which will keep this generation renting for life and will of course impact on taxpayers having to subsidise even more people on Housing Benefit.

David Orr, chief executive of the National Housing Federation, said: “We hear a lot about ‘making work pay’, but a decent job won’t even cover the cost of a home in England. Billions of pounds of taxpayers’ money is wasted, lining the pockets of private landlords, when it could be better spent building more homes people can afford. Relying on the private rented sector so heavily is a costly sticking plaster rather than a solution.

“In towns and cities pulling away from the recession the dysfunctional housing market is burning the fingers of many people. Hard-working families are spending more and more of their income on a home and many could be forced to move - away from jobs, schools and relatives. We need to address the problems of the housing market now, before another generation is left locked out and reliant on taxpayers to keep the roof over their head.”

About Housing Benefits / Local Housing Allowance

• How is it determined what Housing Allowance a Tenant will receive more
• What Housing Allowance 'Rent' can my tenants claim (or charge) for my property more
• The council have approached me and offered me a deposit to rent to a family more
• I want to discuss the claim with the council but they refuse to talk to me more
• What are the considerations when vetting Tenants on benefits more
• I have a Benefits Tenant in rent arrears what are the pitfalls more
• The Council want to do an inspection of my property more
• The council paid a deposit for a new Tenants what do I have to do more
• The Tenant is over 8 weeks in arrears I want the rent paying direct to me
• Entitlement to the LHA is means-tested the Tenant will need to provide a valid tenancy agreement as proof.
• The council have informed me the Tenants claim has been suspended or and requested that I repay the rent money back to to the council see Overpayment suspension and repayment of LHA Housing Benefits