Rethink on housing benefit cap for elderly and vulnerable

Move follows outcry from charities and evidence that housing projects have been abandoned

Plans to cap housing benefit for thousands of mentally ill, elderly and other vulnerable people in supported housing are to be re-examined after protests by MPs and charities.

The rethink, expected within weeks, also follows evidence from the National Housing Federation, which found that 85% of schemes to build new supported and sheltered homes for vulnerable people have been shelved by housing associations because of fears that the new funding system will make them unsustainable.

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