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

RJP33

Lotus-eater wrote: »

Already linked from BBC
Enver Solomon, policy director at The Children's Society, said it was "delighted" with the results of the vote, arguing it was "totally unfair that a small family with a household income of £80,000 a year receive it, yet a large family with a benefit income of £26,000 are excluded".

Big difference between earning money and being given it from other people eh? And as the poster above mentioned it's really £35k when you take tax and NI into account.

I can't believe there's people who think it's right that someone can earn more on benefits than in work.

bob_a_builder

Now the lords have voted not to include child benefit in that!

Seems mainly to be the Bishops advocating busting the cap

They seem to forget that the avg vicars salary is only 22K
"do unto others as you wish ..."

The-Joker

Couple of letters in the Metro today, saying they have to work very hard to take home anything near to the the cap £480wk.

After travel to work, NI and income tax, you need a lot to take home £480 wk. Its still to high.

But even this £480 will bring chaos to the rental and property markets. Get ready for big falls, as either landlords reduce rents or find their property sitting empty until they do.

RJP33

The-Joker wrote: »

But even this £480 will bring chaos to the rental and property markets. Get ready for big falls, as either landlords reduce rents or find their property sitting empty until they do.

You can call that a correction! It's obvious that landlords will just charge the full amount of what we pay in housing benefit.

Killmark

The-Joker wrote: »

But even this £480 will bring chaos to the rental and property markets. Get ready for big falls, as either landlords reduce rents or find their property sitting empty until they do.

Bit naive really, the vast majority of landlords don't accept tenants claiming LHA in the first place.

The weekly rent would need to be more than £250 per week before this would have an effect on the ability of the claimant to pay their rent, even then they have £250 to make up the difference.

All that will happen is people in central London with 2 kids or less will move to outer London and anyone with more 3 kids or more will move outside of greater London.

Problem solved.

wotsthat

The-Joker wrote: »

But even this £480 will bring chaos to the rental and property markets. Get ready for big falls, as either landlords reduce rents or find their property sitting empty until they do.

and when interest rates return to more normal levels etc. etc.

Former_Spice

There are so many posts on here claiming that the housing benefit is going to the tenants. It is of course going to the landlords and private equity groups that own the properties, are fleecing the taxpayers and making off with vast profits. I doubt you will ever see white upper class rich millionaiire landlord overcharges taxpayers as a tabloid headline.

pqrdef

Lotus-eater wrote: »

It's not even £26k really, it's £35k before tax, with no getting to work costs for those that don't work.

Not really. Your £35K earner who takes home £26K will have it all to himself. If he's got a lot of kids he'll get child benefit, tax credits, maybe housing benefit, so he'll take home a lot more than £26K.

To do a meaningful comparison, work out what sort of family will hit the £26K cap, then work out what the same family would need to earn to clear £26K including benefits.

It'll be a lot less than £35K. Way way less. Public opinion is being manipulated by misleading propaganda.

Owain_Moneysaver

drc wrote: »

It's interesting to note that now Labour are jumping on the bandwagon and suggesting that the welfare state needs to be radically changed,

Well, they had long enough to do it in, if they'd really wanted to.

Killmark

pqrdef wrote: »

Not really. Your £35K earner who takes home £26K will have it all to himself. If he's got a lot of kids he'll get child benefit, tax credits, maybe housing benefit, so he'll take home a lot more than £26K.

To do a meaningful comparison, work out what sort of family will hit the £26K cap, then work out what the same family would need to earn to clear £26K including benefits.

It'll be a lot less than £35K. Way way less. Public opinion is being manipulated by misleading propaganda.

If they have lots of kids then they will either have child care costs or have one parent staying at home.

At £35k gross they wouldn't be getting much CTC at all unless they claimed some of the child care costs, in which case the partner would be working and their income would reduce the CTC they get for childcare costs making a salary sacrifice and childcare vouchers more likely option.

Housing benefit on £35k gross, not a chance.