Over 40% of low earners are eating and buying clothes less to pay their rent, study finds

Almost half of low-earners have cut back on essential items such as food and clothes in order to cover the cost of rising rents, a new report has revealed.

The study, by housing charity Shelter, also found that one in 10 workers on low wages has fallen behind on paying bills because they are struggling to afford their rent.

Shelter is calling on the Government to invest in 500,000 “Fair Rent Homes”, which would be available at rents linked to local incomes.

Earlier this month ministers announced a further £2bn of funding for 25,000 new affordable homes, but critics said this did not go far enough and does not help people who are low-paid but do not qualify for social housing.

Shelter said “Fair Rent Homes” would be aimed at people who are in jobs such as care workers, hairdressers, security guards and factory workers.

People would qualify if they earned less than £45,000 a year in London and £35,000 in the rest of the country – higher than the threshold for most social housing.

The research, carried out in conjunction with YouGov, found 44 per cent of low-paid renters had been forced to cut back on basic items, including food, clothes and toys for their children, in order to pay for their home.

Thirty-two per cent had cut spending on clothing, while 20 per cent had saved money on food.

More than one in five – 21 per cent – had ditched some leisure activities for their children, such as days out or swimming, and 13 per cent had been forced to scrimp on children’s clothing and toys.

Polly Neate, chief executive of Shelter, said: “No parent should have to choose between buying school clothes or paying their rent. But far too many families are feeling shame and anxiety as they are forced to make impossible decisions just to keep a roof over their children’s heads.

“This report reveals the true scale of housebuilding this country needs. Despite slogging every hour they can, huge numbers of people are struggling to keep up with colossal private rents. And with next to no chance of getting a council home, they are trapped and are forced into dangerous debt.

“It’s good to see the government investing in council housing for those hit hardest by the housing crisis but there are millions more low paid renters only just scraping by, who also need help. Only investing in a new generation of Fair Rent Homes will give these families the chance of a stronger and more secure future.”

As the number of social homes has fallen and house prices have soared, millions of people have been left trapped in the private rented sector.

Shelter’s call for “Fair Rent Homes” is similar to Labour’s plan to introduce “living rent homes” that would have costs capped at a third of local earnings.

The party’s Shadow Housing Secretary, John Healey, said: “This report echoes Labour’s argument that to fix the housing crisis we need to build many more genuinely affordable homes, but since 2010 Conservative Ministers have washed their hands of any responsibility to build the homes families on ordinary incomes need.

“New affordable housebuilding is now at the lowest level for 24 years. Labour will build thousands more genuinely affordable homes to rent and buy including new living rent homes to help people on ordinary incomes with the high cost of housing.”

A spokeswoman for the Department for Communities and Local Government said: “Affordable housing is a top priority for the Government. Since 2010 we have delivered almost 333,000 affordable homes but we want to go further.

“That’s why earlier this month we confirmed plans for a new generation of council and housing association homes through a further £2bn funding boost, bringing investment in affordable housing to over £9bn.’’