£480 wk ben cap not enough for families in London to live on.

Darthvader

"Family size also affects the scale of the reduction in income, not least because of plans to put a £25,000 cap on the total value of benefits that can be paid to any family, regardless of size."

http://uk.finance.yahoo.com/news/families-hit-benefits-changes-061806343.html


But in London housing benefit and council tax benefit will make up most of that £480 per week?


When are these cuts coming in? What will this do to the property market especially in London?


£480 wk cap is not enough for most families with kids to pay rent/council tax and have enough to live on in London.

Even if they could find somewhere to live in London for less than £300 wk rent/council tax they would prefer to live far away from London where less than half of their £480wk cap would go on rent and council tax.



Say a family in London could find a place for around half that £240 wk rent, council tax would make it around £270 of their allowance used up. Could they really live on about £200 per week for food and bills and everything else?

madmonkey01

most working families in the UK do not get that much a week to live on.

HappyMJ

Darthvader wrote: »

"Family size also affects the scale of the reduction in income, not least because of plans to put a £25,000 cap on the total value of benefits that can be paid to any family, regardless of size."

http://uk.finance.yahoo.com/news/families-hit-benefits-changes-061806343.html


But in London housing benefit and council tax benefit will make up most of that £480 per week?


When are these cuts coming in? What will this do to the property market especially in London?


£480 wk cap is not enough for most families with kids to pay rent/council tax and have enough to live on in London.

Even if they could find somewhere to live in London for less than £300 wk rent/council tax they would prefer to live far away from London where less than half of their £480wk cap would go on rent and council tax.



Say a family in London could find a place for around half that £240 wk rent, council tax would make it around £270 of their allowance used up. Could they really live on about £200 per week for food and bills and everything else?

When are they coming in? A long time yet....and there is a way around it. Get a job any job even unprofitable self employment working the minimum hours required. The benefit cap does not apply to the working tax credit component nor does it apply to the childcare component. 2 benefits that can only be obtained by working.

Darthvader

madmonkey01 wrote: »

most working families in the UK do not get that much a week to live on.

Exactly right. Its stupid how these low income families are still getting £1000's per week housing benefit in London. Some are getting £2000 per week just rent, and a few reportedly are still getting around £4000 a week benefit just for rent. Then they get their council tax paid and loads of other benefits to buy fags and booze.

This has to stop.

But when £480 total cap comes in, what will happen to the London property market? These high rent benefit payments were propping up prices, this is why the cuts were postponed last time.

Road_Hog

Darthvader wrote: »

£480 wk cap is not enough for most families with kids to pay rent/council tax and have enough to live on in London.

Even if they could find somewhere to live in London for less than £300 wk rent/council tax they would prefer to live far away from London where less than half of their £480wk cap would go on rent and council tax.

Then they'll have to move out of one of the most expensive cities in the world and live somewhere cheaper. Once they get a job and can afford to live in London, then they can move back.

People need a safety net, but when you're not paying for it you can't expect to live in Mayfair.

Darthvader

Road_Hog wrote: »

Then they'll have to move out of one of the most expensive cities in the world and live somewhere cheaper. Once they get a job and can afford to live in London, then they can move back.

People need a safety net, but when you're not paying for it you can't expect to live in Mayfair.

So you can see huge population movements out of London and price collapsing when these props holding up high prices come out?

Road_Hog

Darthvader wrote: »

So you can see huge population movements out of London and price collapsing when these props holding up high prices come out?

!!!!!! are you on about? What has that to do with my post? Are you on drugs?

Flight2quality

The_White_Horse wrote: »

well get out of London then. like most commuters are forced to. scum bags.

True of course. But the main issue here is can the government just go cold turkey and cut total benefits down to 480 a week per family? This will be catastrophic for all families betting about 250 per week housing and council tax benefit. Most of those affected will be in inner London, but riots and social unrest could spread far more than it did in 2011.

The question that should be asked is how the government got into such a mess, paying thousands of pounds every week so that so many poor families can live in expensive areas. Paying so much has just pushed up prices rents and property prices.

I wonder how many families are getting around 240-250 or more per week housing benefit? Because they will need at least 240 week left from their total cap to live on.

All this at a time when utilities are going up as well as huge food price inflation.

FTBFun

Are you worried or something?

https://forums.moneysavingexpert.com/discussion/comment/49530841#Comment_49530841

wotsthat

FTBFun wrote: »

Are you worried or something?

https://forums.moneysavingexpert.com/discussion/comment/49530841#Comment_49530841

You don't really think of the movers and shakers in the world of precious metals being on housing benefits.

dealer_wins

Anyone who uses the word "prop" needs castrating without anesthetic.