arrears have increased by 340% following the housing benefit cuts

woodgreen2013

This is just 2 months in! the real effects have not yet started to bite. What will happen when these families get evicted over the next few months and the landlords try to find someone else to live there paying out of their own pockets?

How much will that 340% number go up on the next benefit cuts? Then the next cuts and so on?

David Orr, Chief Executive of the National Housing Federation, told BBC Radio 5 live's Breakfast, "We now have some housing associations who are training their frontline staff in dealing with people who are suicidal... this is causing real misery for hundreds of thousands of people."

If the suicide rate jumps up so much for this little cap of £26K year, what will happen when Universal credit comes in and even more low income families can no longer afford their rents?

On the bright side...

In a statement, the Department for Work and Pensions said, "This reform will save hard working taxpayers almost £1 billion over the next two years and will help restore fairness to our housing benefit system."

Find it difficult to believe that "hard working tax payers" will actually notice a significant difference whilst those struggling to move to a cheaper area will.

woodgreen2013

Housing_Benefit_Officer wrote: »

And in 5 years time goodbye all Local Authority Housing Benefit Departments and hello to a centralised call centre where you will never speak to the same person twice - if you can get through that is.

Although we will still be administering Local Council Tax Support - I'm hoping for redundancy as I will be quids in

What do you think the cap will be low income families in London in 5years time? Or do you think there will be any low income families still able to afford to live in London if average rents do not come down in line with the newly cut benefit caps?

Ronaldo_Mconaldo

If they can't live on £26k of benefits a year then hard luck.

Thrugelmir

woodgreen2013 wrote: »

Or do you think there will be any low income families still able to afford to live in London if average rents do not come down in line with the newly cut benefit caps?

Housing benefit created the upward spiral in rents. So the reductions longer term may well have a corresponding impact. Not least that disposable income has been in decline for some years now.

Individuals with mortgages may themselves face increasing pressure in the years to come.

Mr._Pricklepants

Highly misleading thread title.

http://www.bbc.co.uk/news/uk-23122369

Rent arrears have soared in some areas while larger houses are lying empty as people refuse to move into them.

East Ayrshire Council says its arrears have increased by 340% following the benefit cut

IveSeenTheLight

Thrugelmir wrote: »

Housing benefit created the upward spiral in rents. So the reductions longer term may well have a corresponding impact. Not least that disposable income has been in decline for some years now.

Individuals with mortgages may themselves face increasing pressure in the years to come.

Two points to your post: -

1. Can you please show a link to where housing benefit has proven to increase rents and by what extent?
   
   
2. In terms of disposable income prioritisation, where would most people rate shelter? i.e. are there are areas of expenditure which can be reduced to secure shelter, heating and food?

paulineb_2

Ronaldo_Mconaldo wrote: »

If they can't live on £26k of benefits a year then hard luck.

I dont get £26 worth of benefits a year. I get £48 a week of rent paid and £200 a month in WTC and I get council tax benefit as well, I have to pay the water charge.

It works out to just over £5700 a year in benefits and I also need to make up the rent shortfall because Im affected by the new housing benefit cut. There are no 1apt flats in my area, there are 90 in the entire catchment area of the council which covers several towns, 85 of them earmarked for people and the 1apts tend to be for older people.

People shouldnt assume that everyone on benefits gets the equivalent of a living wage, they dont. Particularly if you are single with no kids.

Id hate to have the view of hard luck, but in criticising something someone else posted I wouldnt just assume everyone on benefits gets 26 grand a year. Ridiculous assumption to make.

michaels

If there are people on the waiting list for larger houses then put them in these houses and house those who don't need them in smaller properties, HA or private rental.

If there is no demand for the larger properties then convert then to smaller ones or sell them off and build new smaller ones with the proceeds - as a short term measure the extra rooms could be closed off so that the HB covered the rent.

However where changes in rules require people to move then the govt should meet the removal costs as these could not have been anticipated.

Carl31

This will of course make things harder for some, and hasn't been very well managed

But what's the alternative? Carry on letting people live it up at the taxpayers expense? These changes do make difference to people, but no different to restrictions that most non recipients of benefits face

paulineb_2

IveSeenTheLight wrote: »

Two points to your post: -

1. Can you please show a link to where housing benefit has proven to increase rents and by what extent?
2. In terms of disposable income prioritisation, where would most people rate shelter? i.e. are there are areas of expenditure which can be reduced to secure shelter, heating and food?

Personally, Ive cut down on everything. My heating is rarely on. Last month my gas bill was 37 pounds. 17 of that was gas usage, the rest was my standing charge and VAT

I dont smoke and never have. I dont have a tv. Im on the cheapest mobile tariff.
I buy a bus ticket which I need because I teach fitness classes and I need to take a sound system with me, thats £9 a week.

And if I do go out with friends on occasion, its not unusual for me to spend £3 or £4 of an evening.

I can make an evening meal that costs between £1 and £1.50 and I use a lot of the sites that sell off food close to or past its best before date such as approved foods.

Some stories in the press do the perception of what people who get housing benefit do no favours at all, because for everyone saving thousands a year on benefits and overpaying mortgages, there are people who are just scraping by.

The roof over my head is priority but this HB cut has had a big impact on my life, even £40 a month when you dont have a lot of money is a big drop in income.

michaels

paulineb wrote: »

I dont get £26 worth of benefits a year. I get £48 a week of rent paid and £200 a month in WTC and I get council tax benefit as well, I have to pay the water charge.

It works out to just over £5700 a year in benefits and I also need to make up the rent shortfall because Im affected by the new housing benefit cut. There are no 1apt flats in my area, there are 90 in the entire catchment area of the council which covers several towns, 85 of them earmarked for people and the 1apts tend to be for older people.

People shouldnt assume that everyone on benefits gets the equivalent of a living wage, they dont. Particularly if you are single with no kids.

Id hate to have the view of hard luck, but in criticising something someone else posted I wouldnt just assume everyone on benefits gets 26 grand a year. Ridiculous assumption to make.

Genuine question, couldn't you move in to a private rental if no HA 1 bed flats are available? Would HB increase to cover any increase in rental costs or would you still be out of pocket?