Newham Council said it is struggling to afford to house low-income families and is, “alongside a number of other London councils”, exploring working with housing associations outside the borough to provide homes for those in “immediate need”.
It said the gap between market rents and the housing allowance is too great and has offered a housing association in Stoke the opportunity to lease homes to it.
A Newham Council spokesman said the authority is committed to securing the very best accommodation for people in tough economic times.
“However, the government's decision to cap housing benefit payments is exacerbating the problem and making it harder for low-income families to get a roof over their head,” the spokesman added.
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