Housing Benefit cuts: Chancellor’s example only applies to three families
In his Budget statement the Chancellor said:
Today there are some families receiving £104,000 a year in housing benefit. The cost of that single award is equivalent to the total income tax and national insurance paid by 16 working people on median incomes. It is clear that the system of housing benefit is in dire need for reform
The Daily Telegraph has now undertaken an investigation into how many families in the UK are recieving this much. Its conclusion: three.
£2 billion a year seems like quite a lot to save by cutting the HB of three households. In fact, even if each of these households had their entire HB benefit entitlement stopped (a move that would be counterproductive, as it would leave them homeless creating many additional funding costs) only 0.015 per cent of the savings the Government is seeking would be achieved.
How could this be? The reality that the Government refuse to acknowledge is that the vast majority of losers from these changes are not large families in central London mansions, but low income households up and down the country.