Changes to Housing benefit how much will rents fall?

drc

sellaconcepts wrote: »

I thought the total benefits cap will be £500 per week per household. This has to include everything. So any family with more kids than days working (I like that) will have to move out of London. That is if they want a sizable portion of there £500 for food and living.

I don't think the total benefits cap is coming in until 2012 at the earliest but it might not come in at all as there seems to be so much outcry at the merest hind of reducing welfare. If anyone knows anymore detail about the total benefits cap it would be interesting to hear it.

ukcarper

This is all I could find

Chancellor George Osborne has told the Conservative conference that a ceiling limit will be introduced on the amount of benefits that can be claimed by one family in his efforts to close the "open chequebook" on "out-of-work families". He said the cap could resemble the amount of money earned by the average working family which is estimated at approximately £26,000 a year.

ukcarper

sellaconcepts wrote: »

I thought the total benefits cap will be £500 per week per household. This has to include everything. So any family with more kids than days working (I like that) will have to move out of London. That is if they want a sizable portion of there £500 for food and living.

Thats what I said £26k a year

crazygaijin

This site lists the proposed changes by year

http://www.dwp.gov.uk/adviser/updates/spending-review-2010/

Here is some official confirmation on the £500 pw cap for benefits and prescriptions do not seem to be factored into it. But other medical things be and it may well change.

http://www.hm-treasury.gov.uk/press_48_10.htm



"From 2013, household benefit payments will be capped on the basis of median earnings after tax for working households, which we estimate to be around £500 per week by 2013. The cap will apply to the combined income from:
The main income replacement benefits (Jobseeker’s Allowance, Income Support, Employment Support Allowance);
Other means-tested benefits (including Housing Benefit and Council Tax Benefit);
Child Benefit and Child Tax Credit;
Other benefits (including Carer’s Allowance and Industrial Injuries Disablement Benefit.
One-off benefits and non-cash benefits, such as social fund loans and free school meals, will not be affected."
Updates to the Spending Review proposals are published here

http://www.newcastle.gov.uk/core.nsf/a/wr_nav2_bennews?opendocument


It still sounds to me like many families will move away from London so they will keep more of their £500 per week for food and living. If they stay in London most of their £500 per week will go on rent and council tax ect.

Llubrevlis

So it still may change? If things get better maybe the cuts will not be so bad? On the other hand if the crisis worsens the cuts may be even more extreme.

Shakethedisease

Results of Shelter's report out today...

http://england.shelter.org.uk/news/january_2011/LHA_cuts_to_split_london

These areas already have high rates of multiple deprivation and unemployment - so the reforms are likely to increase the segregation of poor and better-off households within London.

The research was featured on BBC London News on Wed 12 January and builds on our campaign revealing the the impact of housing benefit cuts across the UK.

While much of the media attention on these cuts has focused on the caps to Local Housing Allowance rates, the study finds that the change to using the bottom 30% of rents to set rates is likely to have the greater impact on the number of neighbourhoods that remain affordable.

London Affordilbity map

http://england.shelter.org.uk/campaigns/housing_benefit_campaign/london_affordability_map

In 2016, it seems that most of London will be unnaffordable. That's going to be a lot of landlords looking for tenants..

drc

Shakethedisease wrote: »

Results of Shelter's report out today...

http://england.shelter.org.uk/news/january_2011/LHA_cuts_to_split_london



London Affordilbity map

http://england.shelter.org.uk/campaigns/housing_benefit_campaign/london_affordability_map

In 2016, it seems that most of London will be unnaffordable. That's going to be a lot of landlords looking for tenants..

Of course most of London will be unaffordable to people if they are not working. People can't expect to have their cake and eat it. If you want to live in one of the most expensive cities on earth, then don't expect to have your desires funded by the taxpayer. If you are not working then it is unlikely you need to live in London since you don't need to be living near to your place of work, as opposed to those that do work in London and have to commute from the suburbs/home counties. If the suburbs/home counties are good enough for the worker then they are definitely good enough for the unemployed.

Shakethedisease

A fairly significant proportion of workers claim LHA, most especially in London where rents are so high.

drc

Shakethedisease wrote: »

A fairly significant proportion of workers claim LHA, most especially in London where rents are so high.

It's crazy that people need a taxpayer funded supplement simply to do their job. Surely it is up to the employer to subsidise their employees to live locally so that they don't have to commute rather than the taxpayer? It's the same with tax credits. It ends up being the taxpayer subsidising the income of part-time workers rather than the employer. Crazy situation Labour got us into.

Hsarcgib

Shakethedisease wrote: »

A fairly significant proportion of workers claim LHA, most especially in London where rents are so high.

Its almost 100% of min wage workers in London get LHA and a very high percentage of those will be affected by the changes.

Its only those who still live with their mum that will not be affected yet! But you cant live with your mum forever.