DESPITE an investment of more than £10.6million into affordable housing last year, there is zero affordable shared accommodation in the Caerphilly County Borough, leaving people on universal credit at risk of homelessness.

A report by the homeless charity Crisis warns that the gap between the cost of rent and universal credit is leaving single young people facing the tough decision of paying rent or paying for food.

More than £10million was pumped into affordable housing by Caerphilly County Borough Council in 2017/18, who have said tackling the issue is a priority.

But the Crisis report - released as part of their Cover the Cost campaign, has revealed a worrying gap in the affordable housing market for young people in the borough.

In comparison, more than half of shared accommodation options in Newport - 63 per cent - are classed as affordable housing.

The remaining local authorities in Gwent sit closer together, with Torfaen on 21 per cent, Monmouthshire on 24 per cent and Blaenau Gwent on 27 per cent.

But the figures leave more than 70 per cent of homes unaffordable to people on universal credit in these areas.

Local housing allowance (LHA), administered under Universal Credit, is supposed to provide financial support to those on low incomes who are unable to meet housing costs.

LHA rates for one and two-bed homes fare slightly better than shared accommodation across the Gwent area.

In Torfaen, the percentage of affordable one and two-bed homes is 30 per cent - the highest in Gwent - leaving almost two-thirds of properties unobtainable to people on benefits.

The lowest percentage of affordable one and two-bed homes is found in Blaenau Gwent - 14 per cent.

Those who are single and under 35 receive a lower rate of housing allowance - the shared accommodation rate – which is supposed to cover rent for rooms in shared houses.

However, since 2011 there have been cuts to LHA – meaning it has stopped keeping up with rising rents – and in 2016 it was frozen altogether.

Figures from Crisis show that as a result, fewer homes have been affordable to those receiving the benefit as rents across the country continued to rise.

Councils in parts of Wales are being left to pick up the pieces for those who do become homeless, spending millions of pounds on homelessness services.

Cabinet Member for Homes and Places for Caerphilly County Borough Council, Cllr Lisa Phipps said the issue of delivering suitable affordable homes was a key priority for the council.

“The support provided through Welsh Government, combined with our partnerships with Pobl and United Welsh have been instrumental in helping us make the progress we have to date," she said.

“We look forward to continuing to build upon these partnerships and have a number of further new, innovative developments planned to meet the needs of our residents. As well as helping to deliver the council’s own targets, these developments will also support Welsh Government in delivering its ambitious target of 20,000 new affordable homes by 2021.”

Newport, Blaenau Gwent, Torfaen and Monmouthshire councils have also been contacted for comment.

Karen Grunhut, director of Crisis Skylight South Wales, said everyone deserved the dignity and stability that a safe home provides.

“The widening gulf between Universal Credit and private rents is leaving young people in parts of Wales living on a knife-edge," she said.

"More and more people are forced to make impossible choices between keeping up with the rent and paying for essentials like food and bills, all the while knowing that falling behind with payments could cost them their homes.

“Universal Credit can be a tool to prevent homelessness, but only with the right investment – and that’s why we are launching this campaign today. We need to see the Westminster Government bring Universal Credit back in step with the true cost of renting. This will drastically reduce council spending and will provide greater reassurance to private landlords that people on Universal Credit can afford to pay their rent each month. Most importantly, it will stop people becoming homeless in the first place while giving those on the lowest incomes the safe and stable homes they need to build their futures.”