Personal income cuts and homelessness could strain Council spending

Government welfare cuts are reducing the income levels of many households, which could create more demand on Council services Croydon’s Cabinet is being told on Monday 11 July.

  • All working households claiming universal credit have seen their monthly work allowance fall from £222 to £192 per month.
  • Non-working households subject to the benefit cap of £23,000 and will see a further reduction of £58.31 per week.

In Croydon 215 of the latter households face ‘a significant risk of eviction’, of whom  90 ‘will require a move to homes outside London and the South East; the remainder will need other interventions to prevent homelessness.’

653 households with over 1,750 children in Croydon will be affected by the benefits cap for the first time.

The Council is owed £14m in housing benefit overpayment. At £3 a week repayment received from continuing benefit payments, the Council calculates it will lose £2.4m a year.

The backdating of housing benefit has been reduced from 6 months to 1 month, so that there is less income for the Council.

From next April the housing benefit for single people under 25 will be reduced from  £152 to £82 per week.

From April 2017 all new applicants under universal credit will have their assessments limited to 2 children.

Homelessness will cost Croydon more

The number of households approaching the Council for assistance with homelessness increased from 1,680 in 2009/10 to 2,520 in 2015/16. The number of households accepted as homeless increased over the same period from 425 to 637, and the number living in temporary accommodation increased from 1,267 to 3,137.

The Council warns that ‘the number of households accepted as homeless and the Council’s use of temporary accommodation will continue to increase.

‘Structural economic and housing market factors support this conclusion. While the economy is expected to continue to grow, which is positive for employment and homelessness; there are concerns that access to market housing will be affected by the rate at which household incomes are likely to rise in comparison to house prices and private rents.’

‘Affordability is an increasingly significant issue for households in Croydon, despite the fact that house prices and private sector rents are lower than London overall.’



About seancreighton1947

Since moving to Norbury in July 2011 I have been active on local economy issues with Croydon TUC and Croydon Assembly, and am a member of the latter's Environment Forum. I am a member of the 5 Norbury Residents Associations Joint Planning Committee, and a Governor of Norbury Manor Primary School. I write for Croydon Citizen at I co-ordinate the Samuel Coleridge-Taylor and Croydon Radical History Networks and advise the North East People's History Project.. I give history talks and lead history walks. I retired in 2012 having worked in the community/voluntary sector and on heritage projects. My history interests include labour movement, mutuality, Black British, slavery & abolition, Edwardian roller skating and the social and political use of music and song. I have a particular interest in the histories of Battersea and Wandsworth, Croydon and Lambeth. I have a publishing imprint History & Social Action Publications.
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