Bassetlaw among handful of areas where housing benefit covers required rent

Local Housing Allowance is a benefit payment to those eligible for Universal Credit, to cover the cheapest 30 per cent of rooms in a shared house on the private rental market.

However, figures from youth homelessness charity Centrepoint show just one in 13 local authorities in England provide sufficient housing benefit for people living in the area.

The charity said without the Government raising housing benefit rates, people face homelessness amid soaring rents.

The figures show people renting from private landlords who are eligible for housing benefits in Bassetlaw will receive £304 per month from the local housing allowance this year.

The median rent for a room in a shared house in Bassetlaw is £325, while the cheapest 25 per cent of rents cost up to £303 – which housing allowance covers entirely.

Across the country, just one in 13 local authorities provide sufficient housing benefit to afford the cheapest quarter of rental properties, while the average shortfall is more than £90 per month.

Centrepoint said people on low incomes renting homes are competing with one another, paying soaring costs and offering lump sums to secure properties.

Alicia Walker, Centrepoint head of policy, research and campaigns, said: “If you’re on a low or fixed income, no amount of clever budgeting is going to help you find an additional £100 or more to cover the rent.”

Office for National Statistics figures show prices for all rental properties in the East Midlands have increased by 5 per cent in the year to January, while average rents across England have risen by 4.3 per cent.

A Department for Work and Pensions spokesman said: “During the pandemic, we increased LHA significantly and beyond inflation, benefiting more than a million households by an average of more than £600 over the year.

“We’re maintaining that boost, keeping support for private renters above pre-pandemic levels.

"The benefit cap provides a strong work incentive and ensures fairness for hard-working taxpaying households by encouraging people to move into work where possible. It balances fairness for taxpayers with providing a vital safety net."