Skip to main content

Housing benefit cuts

Housing benefit cuts: Who loses out?

Politicians making savings know for every cut they make they will have to argue not just that it is prudent, but that it is fair.
So it is hardly surprising policy changes that will affect more than 750,000 households are being scrutinised for fairness.
The prime minister says it is unfair housing benefit claimants can live in properties other workers could only dream of.
His opponents argue - in the strongest terms - the policies are profoundly unfair. Labour frontbencher Chris Bryant said they would lead to the "cleansing" of the poor from expensive areas.
A government impact assessment provides plenty of numbers over which both sides of the debate can argue.
It shows the restriction of Local Housing Allowances - which are currently based on the median rent in an area - to the 30th percentile of private rents will affect 774,970 households across the UK, who will lose an average of £9 a week.
Substantial saving
New limits on the amount paid according to the size of a property, including a cap of £400 a week on a four bedroom house, will affect fewer households more dramatically. A total of 21,060 will lose on average £74 per week.
The percentage of privately rented properties available to housing benefit claimants in central London will fall from more than 50% to just 7%.
That impact will be felt most keenly in expensive inner city areas, but some MPs in the suburbs are said to be anxious about the impact of a possible influx of would-be residents.
Labour MPs are keen to point out this is not just a discussion about the unemployed. There are 680,000 working households claiming housing benefit, 14% of the total housing benefit caseload.
And yet there is one rather straightforward number the government would have us bear in mind considering all this.
Housing benefit payments cost the taxpayer around £20bn a year.
As housing minister Grant Shapps pointed out to a Parliamentary committee recently, that is roughly equivalent to the police and the whole of the universities' budgets put together.
Work and pensions secretary Iain Duncan Smith has described the total, and the speed at which it has risen, as absurd. The government's opponents blame rising rents for the housing benefit bill.
But the Treasury expects changes announced in the budget and the spending review to trim almost £2bn a year from the bill by 2014, and it is substantial savings like that the government says are necessary to deal with the deficit.

Popular posts from this blog

இடுப்பழகை கண்டு மயங்கி மார்பழகில் விழுந்தெழும்பியவரின் நிலை

  இடுப்பழகை கண்டு மயங்கி மார்பழகில் விழுந்தெழும்பியவரின் நிலை கவலைக்கிடம்

கவர்ச்சிக் கன்னிகளின் அந்தரங்கம்

 

Afghan helicopter crash kills 31 US troops

A US helicopter crash in eastern Afghanistan has killed 31 US special forces and seven Afghan soldiers, President Hamid Karzai's office says. The helicopter was taking the personnel back to their base after an operation. It is not clear how the crash happened but the Taliban have said they shot the helicopter down. The incident is believed to be the biggest single loss of life for US forces in Afghanistan since they began operations in 2001. The helicopter went down overnight in Wardak province, the statement from President Karzai's office said. It was returning from an operation against the Taliban in which eight insurgents are believed to have been killed. "The president of the Islamic Republic of Afghanistan expresses his sympathy and deep condolences to US President Barack Obama and the family of the victims," the statement said. The Nato-led International Security Assistance Force has confirmed t...