Could you live on £3.72 a month?

Londoners who have to rely on our welfare system to get by are being set up to fail. In fact, one Londoner is forced into homelessness every 11 minutes.

Our Government has set an unrealistically low cap on the financial support our fellow citizens can receive. In a city with some of the highest rents in the world, it means that these Londoners are pushed into using the money they need for bills and daily living costs to pay for their rent.

No-one should be made to make a choice between paying for a roof over their head or paying for food on the table.

We are calling on the UK Government to review the benefit cap so that it is proportional to London’s rent levels.

The table below shows the impact of the unfair benefit cap on Londoners compared to UK’s next two biggest cities. Due to the benefit cap, only four of London’s thirteen areas would see residents able to use their full Universal Credit allowance for bills and living expenses. Londoners in the remaining areas would have to use their Universal Credit to pay rent and in four of the areas, would be left with just £3.72 to live on.

 

Areas

Maximum monthly allowance for 1 bed flat (LHA)

Standard Universal Credit personal allowance (to cover all bills and living expenses)

Overall benefit cap

Money actually left over for all bills and living expenses

Central London

£1,280.46

£324.84

£1,284.18

£3.72

Inner East London

£1,280.46

£324.84

£1,284.18

£3.72

Inner North London

£1,280.46

£324.84

£1,284.18

£3.72

Inner South East London

£1,146.86

£324.84

£1,284.18

£137.32

Inner South West London

£1,280.46

£324.84

£1,284.18

£3.72

Inner West London

£1,204.71

£324.84

£1,284.18

£79.47

Outer East London

£1,047.11

£324.84

£1,284.18

£237.07

Outer North East London

£897.52

£324.84

£1,284.18

£324.84*

Outer North London

£1,067.04

£324.84

£1,284.18

£217.14

Outer South East London

£892.54

£324.84

£1,284.18

£324.84*

Outer South London

£872.60

£324.84

£1,284.18

£324.84*

Outer South West London

£1,047.11

£324.84

£1,284.18

£237.07

Outer West London

£922.48

£324.84

£1,284.18

£324.84*

Central Greater Manchester

£598.35

£324.84

£1,116.66

£324.84*

Birmingham

£523.55

£324.84

£1,116.66

£324.84*

 

* Capped at Universal Credit Personal allowance rate