Number of PRS tenants in poverty has nearly doubled in past ten years

A recent report by the Joseph Rowntree Foundation (JRF), 'Monitoring Poverty and Social Exclusion', has found there are now as many people in poverty in the private rented sector as in the social rented sector in England, Scotland and Wales, (around 4m in each). The report also found the private rented sector is increasingly insecure, with the number of repossessions in the private rented sector rising while mortgage repossessions are falling.

More options needed to alleviate impact of cuts

The foundation’s report calls for the £26bn housing benefit bill - which has risen by 20% over the last five years - to be cut by building more low cost housing rather than reducing benefit entitlement.

Julia Unwin, chief executive of JRF, said:

‘We will never reach our full economic potential with so many people struggling to make ends meet.

‘A comprehensive strategy is needed to tackle poverty in the UK. It must tackle the root causes of poverty, such as low pay and the high cost of essentials. This research in particular demonstrates that affordable housing has to be part of the answer to tackling poverty: all main political parties need to focus now on providing more decent, affordable homes for people on low incomes.’

In response to cuts in housing benefit, the report states: ‘If people need help with their housing costs, it is not enough to remove that help without providing necessary alternatives: lower-cost housing, job opportunities and better pay. These are what are needed if any substantial fall in the housing benefit is to be achieved.’

The report found that the two groups that currently spend the most on housing costs as a proportion of income were private renters in the lowest income distribution group, who spend 55% of income on housing, and social renters in the poorest income group, who spent 33%.

The report also examines money, work, benefits and services

This annual report shows how the UK’s economic recovery is affecting people in poverty, and reveals dramatic changes in who is most at risk compared to ten years ago. The report focuses on money, housing, work, benefits and services. The key points are highlighted in a great infographic on the JRF website, where the full report can also be downloaded.