Working Poor Forced To Spend Half Their Income on Housing

Close to 1.6 million UK households – the housing pinched – are spending more than half their disposable income on the ongoing costs of housing each month.  Of the 1.6 million, retired households and working age households in which nobody works account for just over a third (7 per cent – 110,000 households – and 30 per cent – 480,000 households – respectively). Leaving these two groups aside, there remain close to 1 million working households who are spending over half their disposable income on housing costs. Data from the estate agent LSL Property Services showed rents rising more quickly than inflation, increasing by 2% since July 2013. The Council of Mortgage Lenders (CML)have  also issued a warning on interest rates, despite reporting a fall in the number of borrowers struggling with repayments. Read more on the Resolution Foundation website.

Time to Make a Noise about Housing Attacks

In simpler times, the rent was just the rent. The breakdown of council rents in recent years, to include many itemised service charges, was never for our benefit as tenants. Today, housing experts say that it is "uncertain" whether the universal credit, being phased in from October 2013, will cover tenant service charges, as current housing benefit does. Draft regulations published in June 2012 look set to exclude 13 different types of service charge from benefit coverage. The impact on tenants would be severe, and for some, devastating.  We estimate that the changes would cut the disposable income of single unemployed tenants by one-third, from £64.87 to £42.97 per week. That's on top of the Tories' other benefit changes - the council tax shortfall, the "bedroom tax" and so on. Many councils and housing associations have been considering the withdrawal of some services, because tenants would be unable or unwilling to pay high service charges from their benefit income.  Read more on the Morning Star website.