A key committee vote to determine support for the government's controversial
plans on housing benefit takes place today.
People
now on housing benefit will have to settle their bills themselves a month in advance, rather than the money being paid direct to housing associations or local authorities.
Spending on housing benefits for people in work has risen by a staggering 86 % in three years, according to a report out today by the National Housing Federation (NHF).
But the government's proposal to introduce a
cap on Housing Benefit in supported housing could risk the health and recovery of many people with a severe mental illness.
A survey by Women's Aid found that 39 % of refuges asked said they would have to shut down if they could no longer
rely on housing benefit income.
In the past two years there have been 220,000 more claimants
on housing benefit in the private - rented sector in work.
Since the election in 2010 the coalition government has placed a cap on the amount of benefits people can receive and introduced the Spare Room Subsidy that means people
on housing benefit with more bedrooms than they needed had their benefits cut.
Figures I commissioned from the House of Commons Library suggest that this could be costing us # 4.7 billion pounds a year in lost tax and national insurance revenue, and extra benefits and tax credits including 1.8 billion pounds a
year on Housing Benefit alone.
Surely we should ask if it's fair that the maximum amount that you can
get on housing benefit is set at a level that only the top five per cent of earners would otherwise be able to afford.
The language might have changed very slightly, but the sentiment and ideology are indistinguishable from Davies's outburst in the House of Commons on Tuesday, during a
debate on housing benefit and the bedroom tax.
From April 2018, those
already on housing benefit will continue to receive their award for the first two weeks of their universal credit claim.
The change, dubbed a «bedroom tax» by opponents, was introduced in April and means
families on housing benefit are assessed on the number of bedrooms they need.
Tory backbenchers are risking resuscitating the party's «nasty» tag today, as they put the finishing touches on a package of policy measures which includes harsh
conditions on housing benefit for teenage mothers.
«They have so far been unable to get their own backbenchers to agree a
position on housing benefit and have therefore been forced into the highly unusual position of not tabling an amendment that explicitly endorses their present proposals.»
Consequently a number of measures would be introduced including: Re-setting and restricting Local Housing Allowances; up - rating deductions; reducing certain awards; re-adjusting Support for Mortgage Interest payments; limiting social tenants» entitlement to appropriately sized homes; and the introduction of maximum
limits on housing benefit - from # 250 a week for a one - bedroom property to # 400 a week for a four - bedroom or larger.
Chief executive Adam Sampson said: «The government must not lose sight of the fact that immediate triggers for homelessness - such as a row - can often be worsened by deeper problems such as overcrowding, sky high private rents or punitive
restrictions on housing benefit for young people.
Between 2000 and 2010 spending
on Housing Benefit grew by 50 per cent in real times, and had been on course to reach # 26 billion by the time of the general election in May.
«When you have insecure tenancies, huge cuts to council budgets and caps
on housing benefit happening all at once, you form a brutal concoction which leaves thousands of families without a permanent home.
Government figures show that spending
on Housing Benefit rose in real terms by 34.7 per cent between 2007 - 08 and 2013 - 14.
And from the end of 2015 to the end of 2017 a further three million people are due to be moved over,
focusing on housing benefit claimants
The plans include a new
crackdown on housing benefit and a «mark two» system of universal credit to help push people off benefits back into full - time, rather than part - time, work.
Despite the upturn in growth that is now finally forecast government figures published alongside last month's Autumn Statement show: -
spending on Housing Benefit for people in work set to rise by over # 1bn over the next three years; - and downgraded projections for wage growth between 2015 and 2018 adding # 500m to the tax credit bill.
Spending # 20bn a
year on housing benefit, 40 % of which goes straight to private landlords, is wasteful, but government cuts are pernicious, forcing an exodus into cheap areas with no jobs.
Combined with
caps on housing benefit and significant hikes in social housing rents, poorer families could be chased out of more affluent areas.
«In Great Yarmouth 64 % of the market is taken up with
people on housing benefit or Universal Credit so a landlord in Great Yarmouth, if they wanted to walk away, would be walking away from two thirds of the market.
His plan to axe housing benefit for the under - 25s will have exemptions for special cases, such as domestic violence, but he said: «We are spending nearly # 2 billion
on housing benefit for under - 25s — a fortune.
He added: «We see
it on housing benefit, council tenancies, tax credits and across the board.
The council says it stopped using Boundary House to temporarily house some of its homeless families due to the shortage of affordable move - on accommodation in that area, and points out that the government's welfare reforms have led to an increasing number of properties being unavailable to
those on housing benefit.
It's not quite clear where the cost has fallen, but prizes for anyone who guesses that it'll be
on housing benefit, universal credit and childcare eligibility.
And to ease problems with rent arrears, from April
those on housing benefit will continue to receive payments for the first two weeks of universal credit claims.
A range of other changes are also being implemented which are set to make it far more difficult for people
on housing benefit to afford to live in central London.
The government has confirmed it is considering concessions to its plan for a cap
on housing benefits, as first reported by Channel 4 News FactCheck.
Spending
on housing benefits has risen from # 14bn ten years ago to # 21bn today - that is close to 50 per cent increase over and above inflation.
Labour's first policy commitment, after 3 years of waiting, is more spending
on housing benefit, funded by a tax on pensions and more borrowing.
«We now spend more
on housing benefit that we do on the police and on universities combined,» said Osborne.
Compare that to the # 23.8 bn annually spent
on housing benefit (owing to extortionate rents and substandard wages) and the # 27.2 bn spent on tax credits (owing to inadequate pay) and it becomes clear where the real savings are to be made.