Tuesday, 31 July 2012

Benefit Reforms Will Cause 'Family Breakdown'

New rules will leave young benefit claimants struggling to contribute towards their households’ rent, leading to family breakdown, housing bodies have warned. In its response to the SSAC’s consultation on regulations for the universal credit, the National Housing Federation has voiced concern over a change to rules for ‘non-dependents’. Deductions from benefit are made for non-dependent members of the household, such as grown-up children. Currently, households with people claiming jobseekers allowance or employment support allowance under the age of 25 are exempt from deductions, while those in work can lose between £11 and £74 a week from their housing benefit depending on their income.  The new system brings in a flat rate deduction of £65 per month for everyone over the age of 21, regardless of their employment status. This means working non-dependents will be better off but those aged 21 to 25 years on benefit will be hit by the deduction for the first time.  The NHF believes this is unfair as people aged under 25 years receive less jobseekers allowance and will receive less universal credit. The NHF believes this will make it more difficult for these non-dependents to contribute to housing costs.  Homelessness charity Shelter has warned the move could lead to family breakdown.  Download a copy of the NHF response to the consultation below.

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