Monday, 16 May 2011

Housing Benefit Cuts 'Will Backfire'

The Department of Work and Pensions (DWP) intends to use the Welfare Reform Bill to slash housing benefit for tenants living in homes deemed too large for their needs - even if they have lived there for decades. The measure will hit 670,000 council and housing association tenants - a third of all working-age housing benefit claimants in the social rented sector across Great Britain. Each claimant is expected to lose an average of £13 a week if the Government succeeds in introducing the measure in 2013. The DWP has suggested that households seeing their benefit reduced - by up to 15% for those with one 'spare' room and up to 25% for two or more 'spare' rooms - should 'move to accommodation which better reflects the size and composition of their household' - or make up the shortfall from other income sources. But National Housing Federation research shows that while about 180,000 social tenants in England are 'under-occupying' two-bedroom homes, and will therefore come under pressure to downsize to one-beds, just 68,000 one-bed social homes became available for letting in a single year (2009/10).
Read more on the NHF website.

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