Housing Benefit Cuts Could See Claimants £500 A Year Worse Off

Cuts to housing benefit – now seen as the Treasury’s preferred alternative to cutting tax credits – are likely to damage similar groups of in-work poor claimants by depriving them of more than £500 a year, suggests fresh research by the Institute for Public Policy Research. The research indicates if the chancellor makes all housing benefit claimants pay the first 10% of their rent from their own funds, he will save around £2.4bn a year, but hit 4.8 million households. The housing benefit budget has risen in recent years and now costs the Treasury £25bn. Their analysis comes as George Osborne has been forced by a Conservative backbench rebellion to backtrack on his plan to cut tax credits. Cutting housing benefit entitlement could help make up the shortfall. Read more on the Politics Home website.