Another new tax on housing for hard working families

michaels

Well that is the GD headline out the way.

http://www.bbc.co.uk/news/uk-politics-35515993

In reality those who earn above average and have subsidised council housing will lose some of the subsidy - Ie taking from the rich and giving to the poor. Labour of course are against, they prefer tax payers on below average income who aren't lucky enough to have a council house to subsidise those who earn twice as much or more who do.

Drp8713

I agree with the principle that high earners shouldn't have subsidised housing. But £40k in London a high earner? No. The London limit should be £60-80k.

You get paid £40k a year in London and pay 5% into a workplace pension you take home £2400 a month. Average rent for a two bed flat where I am is £1400 p/m.

Thats 60% of your pay gone. Dont know how a single parent with three kids would survive on the £1000 left.

A travelcard just to get to work costs £150 a month.

So thats £850 for all the bills, food, council tax and childcare.

CLAPTON

Drp8713 wrote: »

I agree with the principle that high earners shouldn't have subsidised housing. But £40k in London a high earner? No. The London limit should be £60-80k.

You get paid £40k a year in London and pay 5% into a workplace pension you take home £2400 a month. Average rent for a two bed flat where I am is £1400 p/m.

Thats 60% of your pay gone. Dont know how a single parent with three kids would survive on the £1000 left.

A travelcard just to get to work costs £150 a month.

So thats £850 for all the bills, food, council tax and childcare.

a single parent with three kids would receive child allowance, housing benefits, tax credits

Drp8713

Someone earning £40k a year gets housing benefit and tax credits? Really.

Child benefit, yes. But surely somebody earning £40k wouldnt qualify for any other benefits.

cells

the article says many people in their council homes will be forced out?

Why is that when the full rent on the council property is in the region of £400-600 a month well within the very affordable range of a person earning £30-40k a year (plus potentially a partners income too)

westernpromise

Drp8713 wrote: »

Someone earning £40k a year gets housing benefit and tax credits? Really.

Child benefit, yes. But surely somebody earning £40k wouldnt qualify for any other benefits.

Should have thought of that before having three kids, I'm afraid.

I can only afford two because of all the tax I pay.

cells

all the council homes in zone 1 and 2 within London should be sold off as they become vacant. It was a big mistake building so many council flats in places like islington/hackney/tower-hamlets.

If there is a good reason the state should be by far the biggest landlord in the land then they can sell 1 three bedroom flat in Hackney and buy 10 terrace homes in stoke-on-trent

cells

Drp8713 wrote: »

I agree with the principle that high earners shouldn't have subsidized housing.

In a lot of the country, more than half in fact, its cheaper to buy than to rent a social flat/house. I am beginning to think maybe the state should subsidize mortgages in those areas rather than subsidise an ongoing council fleet.

Not only would it be cheaper from day 1 but in 25 years there would be no subsidy to pay as the homes would be owned outright.

cells

ending a situation where higher-income social tenants benefit from taxpayer-funded subsidies of up to £3,500 per year.

That figure is surely wrong

According to the ONS the average social rent in Hackney is £430 while the average property is a 2.5 bed flat. The same council flats rent privately in the £1,700 region. So the subsidy is about £15,000 per year not the suggested of upto £3,500

markharding557

The £30000 threshold is for a households income not an individuals.

michaels

cells wrote: »

That figure is surely wrong

According to the ONS the average social rent in Hackney is £430 while the average property is a 2.5 bed flat. The same council flats rent privately in the £1,700 region. So the subsidy is about £15,000 per year not the suggested of upto £3,500

May be a private renter on 40k would get housing benefit?