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When changes to housing benefit allowances were introduced, the government said that they would help to push down private rents.
The largest group of crisis loan recipients were young unemployed people, who were typically awarded £50-60 loans, repayable through their benefit allowances.
This month Nikola Gardner, 41, will be getting ready for another move with her children – her fifth in four years – as changes to her benefit allowances edge her further from the patch of central London where she was born.
Councils said the move was inevitable because there was virtually no suitable private rented temporary accommodation for larger families in London that was affordable within government-imposed housing benefit allowances, which are capped at £400 a week.
Changes to the benefit system, including the benefit cap and reductions to the housing benefit allowances, mean that 13 of London's 19 outer boroughs are now unaffordable for families who receive housing benefit.
"The proposals will in fact go further than salary sacrifice, and are intended to apply wherever a benefit has been obtained instead of cash in any circumstances including, for example, cash alternatives, flexible benefit allowances and simple trading-up of benefits," Groom said.
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She spent months looking for a property big enough to house the family, where the rent was within the limits allowed by the reduced housing benefit allowance.
This is a particular concern for landlords as any loss of income from the reduced benefit cap will first hit tenants' housing benefit allowance.
But the government has introduced a new family tax benefit allowance for single parents with school-age children to make up for the loss of FTB-B.
Will gain a new $750 family tax benefit allowance for each child between six and 12. Will lose family tax benefit B (maximum annual payment of $3,018.55) after child turns six.
Up until this point, certification for sickness benefits had been variable as had disability benefit allowance rates.
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