Nicola Smith
Today’s Budget contains some severe cuts in Housing Benefit. The Budget reveals that from October 2011 Local Housing Allowance (LHA) will be set at 30 per cent of local rents. It is currently set at the median of local rents. This means that in any given area the amount available to pay for housing for eligible claimants will fall significantly.
Shelter in Scotland have said:
This is at a time when nearly half of LHA claimants are already making up a shortfall of almost £100 a month to meet their rent. By ripping out this support from under their feet it will push many households over the edge, triggering a spiral of debt, eviction and homelessness.
Further changes are also proposed. There will be cuts in the rates that will be paid for larger properties, which accommodate families. From next April LHA will be capped at £250 for a one bedroom property, £290 for a two bedroom property, £340 for a three bedroom property and £400 a week for a four bedroom property.
Jobseeker’s Allowance claimants who are in reciept of Housing Benefit will also be penalised – from April 2013 after they have been claiming JSA for a year they will have their Housing Benefit entitlement cut by 10 per cent – presumably meaning that they have to move house, become homeless or pay the extra with their £65 a week JSA.
Details on the impacts of these changes will become apparent over the next few days. But it seems highly likely that they will lead to LHA recipients being marginalised into the worst accommodation in the poorest areas, or to it being impossible for families to be accomodated at all – which will mean that the costs of temporary and bed and breakfast accommodation, as well as social service budgets, will rocket.
Comment made by A on Jul 26th 2010 at 8:01 pm:
Hi,
If Government wants to pay benefits they can pay, I just see how unfair is for a working couple. Now we have together 37K, he is self employed and I employed. If I take mortgage now I would need to pay 900 per month plus child care cost. And I am not getting a penny. This is where now where only a man is working as self employed who earns 12000 net plus government pays for their rent plus they gets monthly 1400 benefits whcih means they get put aside this 12000 a year, wheras us maybe 1000 if lucky. This is where I get fed up with Gov. they cannot calculate. if they pay housing for someone they can pay my mortgage or child care cost 250 per week per child.
Comment made by Melanie on Jul 28th 2010 at 12:25 am:
If you can afford to buy a property, then buy a property, if you can’t then rent.
The government already have a basic living rate calculation and everyone should have this amount of ‘living’ income for each member of the household. No one should have to have their income reduced below the base rate to cover housing costs. HB cuts will affect people at the lower end of the income scale. I don’t believe any government will leave the people right at the bottom to become destitute. I am 100% not a tory supporter, but like to have a little faith – there will be a loop hole that saves us at the bottom, i am sure of it.
This is coming from the lowest paid sector of the country, a full time carer so I can understand struggling.
If 2 partmers are no better of with both working then one of them should consider taking on the role of full time parent, thus freeing up a job for another person or family.
I worked a 50 hour week with my eldest children but had to become a full time carer when me disabled son needed me. I find i know my younger children better than my older 2 as i was never there for them when they were growing up. This is my experience.
I do find it strange when single parents are ridiculed for claiming £50 in Tax credits but the people who do the ridiculing see it as there right to claim £200 in child care tax credits, surely it would save the government money if people looked after their own children from the age of 0-13 ? They could also make savings by subsidising the childcare of lone parent working families as there is no 2nd adult to stay at home. Then if double income families choose to have children then they pay for their own childcare. There have been too many easy rides in this country.
The gov. should also pour plenty money into new builds of social housing for rent, thus reducing the need for the inflated rental costs and the HB bill. Nearby a 2 bed is 74, 3 bed is 84 and 4 bed is 94 per week to rent off the council but private (for ex council houses) is, 150,180 and 250 per week.
Comment made by danny boy on Jul 28th 2010 at 1:10 am:
claire what you say makes sense but until the british people wake up and smell the coffee just for once this whole farce of governing our country will never ever change, you say that if we had a revolution people would possibly loose their lives, but if that was the only solution then lets bow out with a sense of honour for doing the right things for the right reasons and give the next generations some kind of chance and hope, our troops are loosing their lives in afghanistan for no sense nor reason right at this moment, we cannot continue to accept the disgraceful and incompetent decisions made by a few hundred morons at the expense of 60 million british lives, sadly 99.9% of voters dont even understand politics but turn up in their droves to vote their lives away every 4 years, i am sure that i wouldnt sign any piece of paper without reading the small print and know exactly what i am letting myself in for. its not just the cuts its the theft and the way that the british are exploited by its own leaders, bank charges 0845 numbers, standing charges, absurd petrol duty, out of control gas and electric prices, i could go on and on, considering that this country ruled three quaters of the globe only about 120 yrs ago and pilfered and thieved from every country it entered has anyone stopped and asked where has all that tax free cash and goods ended up because i can guarantee nobody on this blog has it stashed away on the quiet
Trackback made by Housing Benefit cuts: What more do we know? | ToUChstone blog: A public policy blog from the TUC on Jul 28th 2010 at 12:05 pm:
[...] changes that the Budget outlined to Housing Benefit have proved to be some of the most controvertial. Since they were announced extensive analysis has [...]
Comment made by clare fernyhough on Jul 28th 2010 at 2:36 pm:
Danny Boy – yes you are right in everything you say above; there are many things that I just don’t think people are aware of, like the fact that after the signing of the Lisbon Treaty last year we’re no longer really an independent state any more, and our country’s assets has been sold off ‘lock stock and barrell over the last 40 years much like what happens with 3rd world countries. I think people will riot, but at the same time, the government are hitting so many sections of the public hard that everyone will be fighting their own corner and no one will care about the poor. What worries me Danny is that ordinary people are far more bigotted and ignorant with regard to politics than they were in 70′s and 80′s, and as long as they have their beer and sky tv they couldn’t care less: according to many message boards, they are delighted that we’ll all be evicted! Well, despite all of the grand speaches in the Lord’s concerning it the bill got royal ascent today, so it’s now the law.: we’re doomed!
Comment made by Helen Jones on Jul 28th 2010 at 8:19 pm:
I have worked since I was 13 years old so has my husband, now through an infection which I got during an operation I am now disabled. I am married with 2 small children my husband is my carer. We now live on benefits. We have full support from both our famillies including financial, without that we would not be able to cope. We have been told our benefits are being cut and now housing benefit aswell. We have no idea how we are supposed to live.
Trackback made by Cuts Watch: The consequences of Mr Osborne | Left Foot Forward on Aug 6th 2010 at 10:02 am:
[...] with the expectation that the entitlement of one claimant in every five will be removed. Housing Benefit reforms will put a cap on the amount that can be claimed – regardless of what your rent may [...]
Comment made by shelley on Aug 14th 2010 at 9:23 pm:
i am really confused, i dnt understand this, it says something about a 4 bedroom and 400pound a week whts tht all about, my rents 70pound a week, for 1 bedroom am guessing these prices are aplying to like london where rent for a 1 bedromm a wulld think is maybe like 600 a month mayb a wuldnt no
Comment made by Nicola on Aug 16th 2010 at 12:57 pm:
Hi Shelly,
The best thing to do if you want detailed advice about your specific situtation is to contact Shelter (http://england.shelter.org.uk/) or your local authority. There are various changes being introduced at various periods over the next few years. While you do not sound as if you will be affected by the cap on the number of bedrooms that Housing Benefit can be claimed for, it may be that you see a small reduction in your rent as the amount of HB paid moves from the median of local rents to the 30th percentile. But that will depend on how your rent compares to other rent levels locally.
Best
Nicola
Comment made by Roz Rayner-Rix on Aug 18th 2010 at 10:29 am:
To poor Phil.
I too live in a similar way Phil. I got rid of my TV (£12 A MONTH NOT £5 A WEEK) that has helped such a lot. I never watched it anyway. I think you can get help with feeding your dog. Stop giving him chicken, that’s all he will eat as that is all you are giving him. I suggest you look for a cheaper utilities supplier as you are paying far too much.
With regard to the foreign people living here. There are now millions of UK people living overseas, many of them claiming from that countries resources. I suggest you look at the tent cities all over America. Once unemployment benefit stops there people get nothing. There is no JSA, they have to rely on food banks and hand outs from relatives. I suggest you look for some free food in your area. Also 34,000 people die each day because they don’t have enough food or shelter.
I am not at all on the side of the government I don’t even vote as they are all dancing to the same puppet master, but your attack is somewhat in the wrong direction. The money problem was all created by the unnecessary wars that are not only killing and destroying the lives of millions of people, they are draining the coffers of the needy.
You will get help if you look for it in the right places.
To finalise, in March I applied for a loan from the Social Fund for a bed and a Washing machine, they offered me half what I needed and wanted £13 a week in repayments. I refused the loan and discovered last weekend that they think I have had the loan and are stopping the money from what I get… I have managed to prove my innocence but have not got the money sorted as yet. It could take weeks. They accused me of fraud and said I had other loans when I have never had one in my life. Then found they had been looking at someone else’s details on the screen. Looks like someone else may have had the money I refused which makes me think how many others could have been affected like this. Fraud yes but not of my doing.