Welfare reforms will hit families in Private Rental Sector hardest

Households with several children living in the private rented sector will be the hardest hit in the benefits shake-up, losing up to £1,250 a year, according to another flurry of research on the new Universal Credit.

The latest study, this time a joint study by the Institute of Fiscal Studies and the Family and Parenting Institute, says households with children could experience a 4.2% drop in income by 2015.

Under the shake-up, the Government will cap the total amount of benefits that each family can claim at £26,000.

Dr Katherine Rake, chief executive of the Family and Parenting Institute, said: “These figures reveal the full extent to which families with children are shouldering the burden of austerity. Having children has always been expensive. But now many families with children face an extra penalty of more than £1,000.

“In light of this new evidence on families with more than three children and those living in the private rental sector, we believe that the Government urgently needs to look again at the damaging impact of cuts to Local Housing Allowance and the housing benefit cap.”