Osborne to Limit Benefit Payments

Maximum limits on housing benefits have been announced by chancellor George Osborne during his first Budget speech. Housing benefit will be limited to £400 a week for a four bedroom house and £280 a week for a one bedroom house. Mr Osborne said the move would save £1.8 billion by the end of the parliament. He said spending on housing benefit, which increased by £7 billion over the last four years, was ‘completely out of control’ and the system in ‘dire need of reform’. From April 2011, Local Housing Allowance Rates will be capped at £250 per week for a one bedroom property, £290 per week for a two bedroom property, £340 per week for a three bedroom property and £400 per week for four bedrooms or more. Download the full Budget Statement from the Treasury website by clicking on the logo below.