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Spending Review: benefits cut in welfare axe

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  • Indie_Kid
    Indie_Kid Posts: 23,078 Forumite
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    flea72 wrote: »
    as someone who is responsible for a child, you fall under the same rules as a 'parent'. however, as you are single, the 24hr rule wont apply to you

    when you retire, you will loose WTC, but still be entitled to CTC. but once the WTC stops, then you should be able to claim free school meals, so you win some, you loose some

    if your income is below £132 a week then you can get pension credit, but i think CTC is classed as income, so you will have above this amount coming in and therefore not be entitled

    unfortunately, your CTC will also drop to the basic £2850 once you give up work

    hth F

    The guarantee part of PC entitles your child to free school meals -> http://www.direct.gov.uk/en/Pensionsandretirementplanning/Benefits/BenefitsInRetirement/DG_10027190
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  • Raphael
    Raphael Posts: 142 Forumite
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    I've just had a quick read through all the previous posts, and trying to understand how things will work out with the new rule about under 35's only receiving LHA amount for a room in a shared flat. Some posters mention that we don't know as yet how it will be implemented, but other posters mention that it's from April 2012 and that it will happen on your claim anniversary / review date, how did you find that out, and does anyone have a link with more official info?

    Unless they only apply the new rules to new claims, I can't see how it could possibly work out... What's gonna happen to all the people under 35 who already live in a one bedroom flat and receive LHA? Most of them won't be able to pay the difference out of their own pocket (where I live for instance the difference is currently £175 per month, and if you're receiving HB in the first place then you shouldn't have a spare £175 every month), so what's gonna happen, do they expect them all to move? And where are they supposed to move to, there's only a limited number of rooms in shared flats that are available to people who are not students!

    If I try and see the positive side, maybe it means lots of 1 bedroom flats will now sit empty for longer and landlords might have to lower their prices, as it is ridiculous to be asked £475 - £500 for a 1-bedroom flat when 2-bedroom flats in the same area go for £550 - £600
  • petrolhead.
    petrolhead. Posts: 84 Forumite
    edited 29 December 2010 at 7:00PM
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    Raphael wrote: »
    I've just had a quick read through all the previous posts, and trying to understand how things will work out with the new rule about under 35's only receiving LHA amount for a room in a shared flat. Some posters mention that we don't know as yet how it will be implemented, but other posters mention that it's from April 2012 and that it will happen on your claim anniversary / review date, how did you find that out, and does anyone have a link with more official info?

    Unless they only apply the new rules to new claims, I can't see how it could possibly work out... What's gonna happen to all the people under 35 who already live in a one bedroom flat and receive LHA? Most of them won't be able to pay the difference out of their own pocket (where I live for instance the difference is currently £175 per month, and if you're receiving HB in the first place then you shouldn't have a spare £175 every month), so what's gonna happen, do they expect them all to move? And where are they supposed to move to, there's only a limited number of rooms in shared flats that are available to people who are not students!

    If I try and see the positive side, maybe it means lots of 1 bedroom flats will now sit empty for longer and landlords might have to lower their prices, as it is ridiculous to be asked £475 - £500 for a 1-bedroom flat when 2-bedroom flats in the same area go for £550 - £600

    I cannot believe that some landlords are asking up to £600pm for a 2 bed flat!

    That's the current equivalent of interest on a £205,000 mortgage! Somebody must be making a killing.
    I have a 3 bed house left to me amongst other things, which currently is empty and has been for more then 6 months in the hope that prices will go up.

    How can people afford that level of rent? Surely it would be better to buy something somewhere. You can still get 95% mortgages, so I am told.
    Thanks for that info, I'm going to find out what it will rent for.
  • Indie_Kid
    Indie_Kid Posts: 23,078 Forumite
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    I cannot believe that some landlords are asking up to £600pm for a 2 bed flat!

    That's the current equivalent of interest on a £205,000 mortgage! Somebody must be making a killing.

    In London, a houseshare is at least £90 per week. In comparison, a 2 bed flat for £600 per month isn't a lot. £205k for a 2 bedroom flat isn't that much for London either - a friends' 2 bed flat sold for about that.
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  • petrolhead.
    petrolhead. Posts: 84 Forumite
    edited 29 December 2010 at 8:24PM
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    sh1305 wrote: »
    In London, a houseshare is at least £90 per week. In comparison, a 2 bed flat for £600 per month isn't a lot. £205k for a 2 bedroom flat isn't that much for London either - a friends' 2 bed flat sold for about that.

    Phew!!! And what gets me is that the salaries in London are not all that different than in say Machester or Liverpool.

    However the house prices are!! A newish 4 bed detached, double garage etc etc, in a rural spot close to M6/M62 would fetch £195,000!!!!

    If you wanted to go down market for an investment property - a mid terr 2/3 bed property would fetch approx £30,000!!

    The property I have been left is in the Ribble Valley, lovely little stone cottages and within 8 miles of Preston and 20 miles of Manchester City Centre. 3 bed semi, stone built originally for the Co-op manager, surrounded by open farm land. Current value approx £115,000
  • Raphael
    Raphael Posts: 142 Forumite
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    I cannot believe that some landlords are asking up to £600pm for a 2 bed flat!

    That's the current equivalent of interest on a £205,000 mortgage! Somebody must be making a killing.
    I have a 3 bed house left to me amongst other things, which currently is empty and has been for more then 6 months in the hope that prices will go up.

    How can people afford that level of rent? Surely it would be better to buy something somewhere. You can still get 95% mortgages, so I am told.
    Thanks for that info, I'm going to find out what it will rent for.

    It really depends where you are. Around here (Edinburgh), £550-£600 for a 2 bedroom flat is the norm in the area I live in (and LHA rate is actually £650), but what I don't get is the prices for 1 bedroom flats, you can't find anything decent for any less than £450-£500 per month (and LHA rate is £500).

    I know the LHA rates will also change once they are calculated as the 30th percentile but what do they base that on? Is it based on the rents that people receiving LHA pay? Or is it based on the rents for the area (whether they claim or not) and if so, how do they get that data?
  • Raphael
    Raphael Posts: 142 Forumite
    edited 30 December 2010 at 1:54AM
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    The property I have been left is in the Ribble Valley, lovely little stone cottages and within 8 miles of Preston and 20 miles of Manchester City Centre. 3 bed semi, stone built originally for the Co-op manager, surrounded by open farm land. Current value approx £115,000

    Sounds lovely, but not for someone who works in the city and doesn't drive!
    You might want to specify that you're open to DSS (unless you have a problem with that), you might get more people interested, check the current DLA rates for your area (and expect it to go down a bit with the new rules), and work something out based on that.

    I'm self-employed and tied to a specific location, but for someone without a job I can see how attractive an out-of-town house would be, especially if you have children and have a garden where you can grow your own veg.
  • Doom_and_Gloom
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    I cannot believe that some landlords are asking up to £600pm for a 2 bed flat!
    It depends where you live though. £600 around the area I live for a 2 bed flat is certainly well below the usual rent a person can expect to pay - LHA is £150 per week for a 2 bed place (appox £650 a month).
    My partner and I rent a 1 bed flat and our rent is £550/month which is not unusual as rents can get a lot higher - £600+ for a 1 bed place is not just possible, there are loads of them.
    By the way we don't even live in London, most of Kent is expencive and the area we live is (although there are areas more expencive than the part of Kent we live in!).

    The LL's aren't making that much of a killing, the property prices around here are high - studio flats and 1 bed flats average at over 90K to buy and the ones below that will cost quite a bit to get up to a standard to ren out if that's what you are buying it for. You can't buy anywhere for 30K I know that much :rotfl: - 30K could get you a 25% share of a 1 bed place though.
    I am a vegan woman. My OH is a lovely omni guy :D
  • Raphael
    Raphael Posts: 142 Forumite
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    Raphael wrote: »
    I've just had a quick read through all the previous posts, and trying to understand how things will work out with the new rule about under 35's only receiving LHA amount for a room in a shared flat. Some posters mention that we don't know as yet how it will be implemented, but other posters mention that it's from April 2012 and that it will happen on your claim anniversary / review date, how did you find that out, and does anyone have a link with more official info?

    Unless they only apply the new rules to new claims, I can't see how it could possibly work out... What's gonna happen to all the people under 35 who already live in a one bedroom flat and receive LHA? Most of them won't be able to pay the difference out of their own pocket (where I live for instance the difference is currently £175 per month, and if you're receiving HB in the first place then you shouldn't have a spare £175 every month), so what's gonna happen, do they expect them all to move? And where are they supposed to move to, there's only a limited number of rooms in shared flats that are available to people who are not students!

    If I try and see the positive side, maybe it means lots of 1 bedroom flats will now sit empty for longer and landlords might have to lower their prices, as it is ridiculous to be asked £475 - £500 for a 1-bedroom flat when 2-bedroom flats in the same area go for £550 - £600

    So I take it no one's got any more info about this? I'm really keen on finding out more as just before this was announced I'd been looking at moving to a more expensive place because despite being incredibly cheap the one I currently live in comes with a lot of problems which kind of offset the difference, and I thought LHA would cover the higher rent anyway, I was hoping to move by next spring or earlier if I happened to find the right place before that but I'm glad now that I haven't moved yet cos I wouldn't want to be forced to move again once the new rule comes in! (at the moment I receive £145 a month, and this will drop to £80 a month when the £15 surplus is no longer allowed, and I can afford losing that, but not paying an extra £150 or so on top).

    Now if the anniversary thing is true, I was thinking I could maybe still move and with a bit of careful planning it might not affect me too much. I will turn 35 in early April 2013, so if I was to take a new flat say late March 2011, the next anniversary date would be March 2012 so still before the new rule comes in, and the following one would be in March 2013, by which point I'd only be a few weeks / days away from turning 35.

    But that's assuming it is treated as a new claim if you move to a new flat, rather than just an update to your current claim with the details for the new address... If it's still the same claim my anniversary date currently is in February so I guess I could probably still cover the difference until early April, even if that means having to get extra work to pay for it, so long as it's only for a couple of months, but there's no way I could go back to working insane hours to cover the difference for a whole year!

    Also, because I'm self-employed and my income fluctuates, I get a review every 6 months, would that mean the new rule could be applied at that review rather than the anniversary of the claim?

    What a headache!
  • sunnyone
    sunnyone Posts: 4,716 Forumite
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    Raphael wrote: »
    So I take it no one's got any more info about this? I'm really keen on finding out more as just before this was announced I'd been looking at moving to a more expensive place because despite being incredibly cheap the one I currently live in comes with a lot of problems which kind of offset the difference, and I thought LHA would cover the higher rent anyway, I was hoping to move by next spring or earlier if I happened to find the right place before that but I'm glad now that I haven't moved yet cos I wouldn't want to be forced to move again once the new rule comes in! (at the moment I receive £145 a month, and this will drop to £80 a month when the £15 surplus is no longer allowed, and I can afford losing that, but not paying an extra £150 or so on top).

    Now if the anniversary thing is true, I was thinking I could maybe still move and with a bit of careful planning it might not affect me too much. I will turn 35 in early April 2013, so if I was to take a new flat say late March 2011, the next anniversary date would be March 2012 so still before the new rule comes in, and the following one would be in March 2013, by which point I'd only be a few weeks / days away from turning 35.

    But that's assuming it is treated as a new claim if you move to a new flat, rather than just an update to your current claim with the details for the new address... If it's still the same claim my anniversary date currently is in February so I guess I could probably still cover the difference until early April, even if that means having to get extra work to pay for it, so long as it's only for a couple of months, but there's no way I could go back to working insane hours to cover the difference for a whole year!

    Also, because I'm self-employed and my income fluctuates, I get a review every 6 months, would that mean the new rule could be applied at that review rather than the anniversary of the claim?

    What a headache!

    start your own thread and a LHA bod will give you the answers that you want, its to do with the median centile changing to the 30th centile or something like that.
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