Fife Council welcomes move to scrap the Local Housing Allowance rent cap

Theresa May shelved plans to cap housing benefit for social housing and supported accommodation, which had been blamed for an 85 per cent decline in new homes being built for vulnerable people, earlier this week.

In a U-turn, the prime minister told MPs in the House of Commons on Wednesday that it would no longer roll out welfare changes that would have resulted in people living in sheltered accommodation having their housing benefit capped in line with private sector rents.

The changes were set to save the Treasury £520m by 2020.

The move has been praised by Fife Council. Councillor Judy Hamilton, community and housing services convener, said: “This decision by the UK Government is a victory for all in the social rented housing sector who have campaigned for this for many months.

“This decision will see our tenants who live in council and housing association housing in Fife, and in supported accommodation, breathe a sigh of relief that they are not going to have housing benefits cut further.

“Tenants were under greater risk of homelessness and poverty. Of course, the devil will be in the detail.”

She added: “I look forward to the detailed announcement from the Government next week, but this is a good day for the people of Fife.”